APAC Retail Guide by STRHLT

Retail Management & Operations Toolkit

3.2

Introduction to the Toolkit: Realizing the potential of hotel retail

THE PURPOSE OF THE TOOLKIT

Hotel retail in APAC is particularly challenging given the stiff competition it faces (from convenience stores, cafes, food delivery and vending machines etc.) and a lack of retail know-how among hoteliers

This Toolkit aims to create a “base” of core retail knowledge to help hoteliers improve retail operations quickly with less effort, supported by practical, real-life guidance and best practice sharing

THE POTENTIAL OF HOTEL RETAIL – WHAT’S IN IT FOR YOU?

Examining successful hotel retail operations in APAC both within and outside Hilton, we found that retail has the potential to:

REINFORCE THE BRAND PROMISE

Bring the hotel’s brand and personality to life, add to the overall atmosphere of the property and create a sense of place

On the flipside, poorly managed retail can hurt guests' perception of the property

PROVIDE CONVENIENCE AND DELIGHT

Delight guests with not only needed essentials but also elevated and desirable offerings they would want

DRIVE INCREMENTAL REVENUES/PROFITS THROUGH RETAIL NICHES

While hotel retail will not outcompete convenience stores in APAC, there are niches where hotels can shine; more financially successful offerings include:

Investing some management attention into retail could unlock outsized rewards by primarily enhancing the customer experience but also potentially strengthening revenue streams from retail

This Toolkit covers 3 retail formats

HOTEL SHOPS & SELF-SERVICE FORMATS

STORE FORMAT: MANNED OR SELF-SERVICE

STORE FORMAT: MANNED GRAB & GO SEASONAL POP-UPS 01 02 03

STORE FORMAT: MANNED

Retail shops operated by the hotel formats with products commonly ranging from snacks to traveler’s essentials and gifts such merchandise and locally produced lifestyle products/ souvenirs

Retail shops operated by the hotel that offer takeaways options such as pastries and coffee as well as a retail section in-store; larger Grab and Go formats may also include dine-in

Non-permanent retail concepts operated by the hotel that provide customers with a selection of seasonal products such as Christmas cookies and mooncakes through hotel pop-up shops

How to use the Toolkit? (1/2)

This Toolkit is designed to provide general advice on retail mgmt. and operations

• Recommendations outlined in the Toolkit should be taken as reference guidelines; implementation is encouraged but left to the discretion of property leadership

• Specific brand guidelines would take precedence over Toolkit recommendations

<hyperlink text> Click to be redirected to specific individual page Understanding key elements

Key principles and considerations for implementation A step-by-step guide for implementation

Supporting tool(s) (templates in MS Excel or otherwise)

: Recommended best practices Watchout/key area(s) to take note of Reference use cases

Step by step implementation guidelines

IDENTIFY

Use self-assessment questions to identify key sections of the Toolkit to focus on

Click here to begin the self-assessment (Link directs you to self-assessment questions on the next page)

Prioritize key Toolkit sections, starting with sections with biggest gaps identified in the self-assessment

Refer to “Getting Started” checklist as a base to help you get started – a general approach is outlined below

Step A Read through relevant Toolkit section

Step B Assign person(s) in charge and budget (if needed)

Step C Develop implementation plan

Step D Execute and measure progress, setting milestones/check ins every 1-2 weeks

Click here to get started (Link directs you to Appendix I)

Self-assessment checklist (1/6)

QUESTIONS FOR SELF-ASSESSMENTS

Prioritize reading through the section if any of the following is true…

1. We do not have SOPs for key store operations processes (e.g., daily operations checklists, repairs & maintenance, refunds & exchange policy etc.)

1.1aiv. Refunds, exchanges and product recalls

1.1ai. Unmanned store ops checklist Click here to get started 1.1aii. Manned store ops checklist 1.1aiii. Store repairs and maintenance

2. We do not have tools to store and share information and manage retail operations planning 1.1bi. Information repository 1.1bii. Project management and team collaboration tools

3. We do not track and monitor KPIs for retail financial performance (e.g., revenue and profitability) as well as nonfinancial operational metrics

KPIs and performance reporting 4. We do not use sales forecasting for retail

Sales forecasting

The next page provides a comparison of the tools → QUESTIONS

SECTION 1.1 GENERAL STORE OPERATIONS

Self-assessment checklist (2/6)

QUESTIONS FOR SELF-ASSESSMENTS

Prioritize reading through the section if any of the following is true…

SECTION 1.2 STORE INVENTORY MANAGEMENT

1. We do not have SKU identifiers for our products

2. We do not have/follow guidelines on storeroom set up and management 1.2bi. Storeroom setup and management

3. We do not have/follow guidelines on management of inventory levels and/or face issues such as stockouts or overstocking 1.2bii. Inventory level management

Annual stock take

Create a Stock Keeping Unit (SKU) Click here to get started

Negative stock

4. We do not perform regular stock takes and shrinkage checks

5. We do not actively manage soon-to-expire products

6. We do not use tools to manage inventory (e.g., inventory expiry and shrinkage)

Shrinkage adjustment

Review shrinkage report

Expiry management

Review shrinkage report

Expiry management

Self-assessment checklist (3/6)

QUESTIONS FOR SELF-ASSESSMENTS

Prioritize reading through the section if any of the following is true…

1. (For manned stores) We do not have/follow guidelines for customer service in stores (e.g., greeting customers, helping them when they shop, helping customers checkout products etc.) 1.3ai. Greeting customers Click here to get started 1.3aii. Helping customers while they shop 1.3aiii. Helping customers checkout 1.3av. Handling customer complaints 1.3avi. Handling customer compliments

2. (For unmanned stores) We face challenges in implementing checkout for unmanned store or are looking into other options for self checkout 1.3aiv. Self-checkout for unmanned stores

3. There is no training of team members involved in retail

4. There is no tracking of customer feedback and satisfaction for retail

Training team members

Feedback channel options

Additional guidelines for customer satisfaction surveys

SECTION 1.2 STORE INVENTORY MANAGEMENT

Self-assessment checklist (4/6)

QUESTIONS FOR SELF-ASSESSMENTS

Prioritize reading through the section if any of the following is true…

QUESTIONS

SECTION 1.4 OTHER CHANNELS

1. We feel there might be a demand for in-room delivery of items from our store and we also currently offer room service

2. We feel there might be a demand for a click and collect service for our store

SECTION 2.1 CATEGORY STRATEGY

1. We face challenges in category and product selection

2. We do not currently tailor product mix to segment needs

3. We are interested in developing branded/ or co-branded merchandise

4. We do not plan any seasonal campaigns/promotions for our shop or face challenges in doing so

1.4a. In-room delivery and click and collect Click here to get started

2.1a. Category strategy and product selection Click here to get started

2.1b. Seasonal planning

5. We do not have an SOP for listing new products 2.1c. Listing new products

Self-assessment checklist (5/6)

QUESTIONS FOR SELF-ASSESSMENTS

Prioritize reading through the section if any of the following is true…

SECTION

2.2

ASSORTMENT RATIONALIZATION

1. We face challenges in optimizing our product assortment 2.2a. Assortment Optimization

2. We do not have/follow guidelines for rationalization of product assortment

3. We do not have any SOPs for delisting products 2.2b. Delisting process

SECTION 2.3 PRODUCT PRICING

2. We do not consider price competitiveness in pricing

1. We face challenges in pricing products 2.3a. Price setting Click here to get started

3. We face challenges in using discounts/ promotions in store

4. We do not have a discount/promotions strategy

Discounts and promotions

Self-assessment checklist (6/6)

QUESTIONS FOR SELF-ASSESSMENTS

Prioritize reading through the section if any of the following is true…

QUESTIONS

1. We face challenges in visual merchandising

2. We do not have/follow guidelines in visual merchandising

3. We do not use strategically use visual merchandising elements (e.g., lighting, displays, shelving, spacing, color etc.) to improve the attractiveness of our store

4. We do not plan product placement on shelving or in displays

5. We do not use point of sales materials (POSM) in our store

2.4a. Visual merchandising and planograms Click here to get started

6. We face challenges in designing and using POSM in our store 2.4b. Point of Sales Materials (POSM)

7. We do not have/follow guidelines on POSM use

SECTION 2.4 VISUAL MERCHANDISING

Addressing key questions in retail operations & management….

A customer wants a refund, what should I do next?

The coffee machine is spoilt, what should I do now?

How should I rearrange the displays?

are

What do I have to do on my shift?

General Store Operations

This section contains guidance on how to perform essential store activities, ensure service excellence and uniformity across stores as well as how to track and manage store performance

SECTION CONTENTS

a. SOPS FOR STORE OPERATIONS PROCESSES

i. Unmanned store operations checklist

ii. Store opening and closing checklist

iii. Store repairs and maintenance

iv. Refunds, exchanges and product recalls

b. COMMUNICATION AND COLLABORATION TOOLS

i. Information repository

ii. Project management and team collaboration tools

c. KPIS AND PERFORMANCE REPORTING

d. SALES FORECASTING

HGI Danang, Vietnam

Unmanned store operations checklist (1/5) – F&B team

Team members to ensure shop floor is cleaned and rubbish is cleared and removed

Team members to replenish shelves at least twice a day (day and night shift)

Shelf replenishment is a good opportunity for team members to note when inventory is low

Team members to inspect the following areas: (Refer to next page for full checklist)

Team members to check email/systems for important updates – supply chain instructions, updates on marketing, prices changes etc.

Unmanned store operations checklist (2/5) – F&B team

OBJECTIVES & BENEFITS

Electrical Fixtures (in working order)

o Ceiling lights

o Air-conditioning

Appliances (in working order and cleaned – non-exhaustive depends on operations)

o Open/closed display chillers

o Ice cream fridge/ freezer

o Microwave/ oven

o Ice machine

Product Displays (cleaned and updated/ replenished)

o Shelves fully replenished, based on planogram

o Expiry dates – remove from display if expired

o Lighting in fixtures – ensure they are working

o Condiments refilled (e.g., sugar sachets)

o Enough packaging available at self-serve station (e.g, paper bags, cups, lids, straws, stirrers etc.)

Selling Floor and Stock Room (cleaned and dust free)

o General cleanliness

o Rubbish cleared away

o Coffee machine

o Water dispensers/ zipline

o Shelves/ fixtures condition – not broken

o Price labels – latest updated pricelist (if any)

o Price labels – promotions are up to date and valid

o Point Of Sales Materials (POSM) (up to date etc.)

Note : Co-ordinate any store-related in room cards/ pricelist replacement with housekeeping department

o No signs of pest infestation (ants, insects, etc.)

o Glass fixtures/ shelves – ensure they are dust-free

Note : Dusty products are a huge turn off for customers, ensure products and shelves are neat and clean

Consider incorporating general store cleanliness and maintenance as part of housekeeping public area checklist

TOOL: CHECKLIST

Unmanned store operations checklist (3/5) – Front desk team

FREQUENCY

When taking over shift from F&B team members

To ensure that the store is in an acceptable condition for operations 01 02

Team members to ensure shopfloor is cleaned and rubbish is cleared and removed 03 04 05 06

Front desk team members to replenish shelves (task may also be assigned to other team members or even Security during the night shift)

Shelf replenishment is a good opportunity for team members to note when inventory is low

Team members to inspect the following areas: (Refer to next page for full checklist)

• Electrical fixtures

• Appliances

• Front desk cashier

• Product displays

• Selling floor and storeroom

Front desk team members to conduct end of shift sales reconciliation (aligned with front desk cash management)

Front desk team members to check POS float (cash in cash register) (aligned with front desk cash management)

Team members to check email/systems for important updates – supply chain instructions, updates on marketing, prices changes etc.

Unmanned store operations checklist (4/5) – Front desk team

FREQUENCY

When taking over shift from F&B team members

OBJECTIVES & BENEFITS

To ensure that the store is in an acceptable condition for operations

Electrical Fixtures (in working order)

o Ceiling lights

o Air-conditioning

Appliances (in working order and cleaned – non-exhaustive depends on operations)

o Open/closed display chillers

o Ice cream fridge/ freezer

Front desk cashier (in working order)

o POS

o Microwave/ oven

o Ice machine

o Coffee machine

o Water dispensers/ zipline

o Receipt printer o Credit card terminals, QR payments e.g., Alipay, etc.

Product Displays (cleaned and updated/ replenished)

o Shelves fully replenished, based on planogram

o Expiry dates – remove from display if expired

o Lighting in fixtures – ensure they are working

o Condiments refilled (e.g., sugar sachets)

o Enough packaging available at self-serve station (e.g, paper bags, cups, lids, straws, stirrers etc.)

o Shelves/ fixtures condition – not broken

o Price labels – latest updated pricelist (if any)

o Price labels – promotions are up to date and valid

o Point Of Sales Materials (POSM) (up to date etc.)

NOTE: Co-ordinate any store-related in room cards/ pricelist replacement with housekeeping department

Selling Floor and Stock Room (cleaned and dust free)

o General cleanliness

o Rubbish cleared away

o No signs of pest infestation (ants, insects, etc.)

o Glass fixtures/ shelves – ensure they are dust-free

NOTE: Dusty products are a huge turn off for customers, ensure products and shelves are neat and clean

Consider incorporating general store cleanliness and maintenance as part of housekeeping public area checklist

TOOL: CHECKLIST

Unmanned store operations checklist (5/5) – Preventing theft

GUIDELINES

CCTVs

Install a CCTV to allow for continuous monitoring. Depending on alignment with hotel branding, discreet yet visible signs indicating the presence of CCTVs can also help deter potential shoplifting

SIGNAGES

Place signages in the store to remind and direct customers to pay at the front desk/ via self-checkout etc.

VIGILANCE

Engage front desk team, security guards and lobby ambassadors to keep an eye on the store. Team members must be trained and briefed on how to recognize suspicious behavior and how to approach customers professionally so potential shoplifters feel noticed and deterred

INVENTORY COUNTS

Implement effective inventory control to track and identify discrepancies quickly

CASE STUDY: HGI Serangoon took the following steps to deter theft

• Ensured that there would be CCTV coverage of the shop

• Added multiple signages around the shop reminding guests to pay at the front desk

• Engaged help of security guard or lobby ambassador to keep an eye on the store as they patrol the lobby area

Store opening checklist (1/2)

To ensure that the store is in an acceptable condition for operations 01 02 03

Team members to inspect the following areas: (Refer to next page for full checklist)

• Electrical fixtures

• Appliances

• Cashier

• Product displays • Selling floor • Storeroom

Team members to check POS float (cash in cash register)

Team members to check email/systems for important updates

– supply chain instructions, updates on marketing, prices changes etc.

Optimize store operating hours by understanding patterns in guest flows, peak traffic hours; helping in resource planning such as staffing and allow the store to potentially save on some labor costs

CASE STUDY: Hilton Tokyo Bay changed opening hours to 11am – 10pm as traffic flow analysis showed that guest did not visit stores earlier in the day, and demand surged after 9pm as guests returned from the nearby Disneyland attraction. This enabled them to cut the early morning shift

Store opening checklist (2/2)

FREQUENCY Daily

OBJECTIVES & BENEFITS

To ensure that the store is in an acceptable condition to welcome customers

Electrical Fixtures (in working order)

o Ceiling lights

o Air-conditioning

Appliances (in working order and cleaned – non-exhaustive depends on operations)

o Open/closed display chillers

o Ice cream fridge/ freezer

Front desk cashier (in working order)

o POS

o Microwave/ oven

o Ice machine

o Receipt printer

Product Displays (cleaned and updated/ replenished)

o Shelves fully replenished, based on planogram

o Expiry dates – remove from display if expired

o Lighting in fixtures – ensure they are working

o Condiments refilled (e.g., sugar sachets)

o Enough packaging available at self-serve station (e.g, paper bags, cups, lids, straws, stirrers etc.)

o Coffee machine

o Water dispensers/ zipline

o Credit card terminals, QR payments e.g., Alipay, etc.

o Shelves/ fixtures condition – not broken

o Price labels – latest updated pricelist (if any)

o Price labels – promotions are up to date and valid

o Point Of Sales Materials (POSM) (up to date etc.)

o Allergy labels and use-by dates for freshly made

NOTE: Co-ordinate any store-related in room cards/ pricelist replacement with housekeeping department

Selling Floor and Stock Room (cleaned)

o General cleanliness

o Glass fixtures/ shelves – dust free

o No signs of pest infestation (ants, insects, etc.)

o Store exterior e.g., glass panels, store displays etc.

NOTE: Dusty products are a huge turn off for customers, ensure products and shelves are neat and clean

TOOL: CHECKLIST

Store closing checklist

END OF STORE OPERATING HOURS

o Clean and disinfect shopfloor

o Empty rubbish bins

o Ensure shelves are replenished

o For stores with seating, cordon off the area after operating hours to prevent guests from entering

Best Practice: Invite customers who wish to enter after last order timing to visit our store the next day instead and inform them of store operating hours

o Close POS counters and complete sales reconciliation

Note: Ensure discrepancies are escalated to supervisor/ manager on duty

AFTER STORE IS CLOSED

o Ensure cash is deposited/managed according to Property’s cash management guidelines

o Highlight any concerns/incidents/feedback on the daily report or communication log to ensure prompt action is taken

o Turn off unneeded lights and electrical appliances

o Close area and ensure drawers are locked

Optimize store operating hours by understanding patterns in guest flows, peak traffic hours; helping in resource planning such as staffing and allow the store to potentially save on some labor costs

TOOL: CHECKLIST

Store repairs and maintenance

FREQUENCY

Daily checks with regular maintenance

OBJECTIVES & BENEFITS

• Fully functional store

• Safe and pleasant shopping experience

GUIDELINES

PLANNING AND SCHEDULING

• F&B and Engineering to ensure a scheduled routine for maintenance of appliances

• In the case of urgent/ ad-hoc repairs, F&B to contact relevant vendors for on-loan appliances and Engineering for inhouse appliances

STORE SECURITY

• Ensure identity of the maintenance personnel is verified by security before they are given access to unauthorized areas

• Any repairs/ maintenance work should be supervised

PRIORITIZATION OF REPAIRS/MAINTENANCE WORK

• Repairs and maintenance issues can be grouped based on two levels of urgency:

URGENT

Issues that impact business operations, put team members or customers in danger or create security risks need to be resolved such as:

• Issues with fixtures/shelving/glass displays etc. that put customers or team members at risk of getting hurt

• Issues with appliances (e.g., coffee machine, microwave etc.) and fridges/chillers

• Air conditioning leaks

• Sink leakages

• Lighting issues in the storefront

LESS URGENT

• Issues that do not affect daily operations and can be resolved at the next scheduled maintenance or on a later date

• These issues include but are not limited to:

• Issues with fixtures/shelving/glass displays that do not put customers or team members at risk of getting hurt

• Minor lighting issues

Refunds, exchanges and product recalls (1/2)

GUIDELINES (1/3) FREQUENCY

• Deliver a consistent client experience

• Ensure a clear and ethical framework for handling refunds and faulty products

NOTE: Country-specific rules and regulations must be adhered to, and may supersede guidelines in this Toolkit

TO PREPARED FOOD AND BEVERAGES)

• Made within 7 days of purchase

• Product is a packaged product

• Products in original, unused/unopened and resalable condition

• Refunds and exchanges must be made in same store where it is purchased

• Original receipt is required as a proof of purchase

• Refunds are made using the original mode of payment

• Amount refunded should equal amount paid, inclusive of taxes (including any promotional discounts)

• Other terms and conditions may apply to specific promotional or seasonal items e.g., Christmas Cookies

Refunds, exchanges and product recalls (2/2)

FREQUENCY

As requested

OBJECTIVES & BENEFITS

• Deliver a consistent client experience

• Ensure a clear and ethical framework for handling refunds and faulty products

DEFECTIVE PRODUCTS

• For non-isolated/ repeated incidents of product defects, incident should be recorded and reported to manager on duty

PRODUCT RECALL CAMPAIGNS

Should there be a need to recall products, the following would need to be communicated to team members:

• List of affected items and descriptions

• Communications to customers

• In-store communications

• Instructions for processing (e.g., destroy/dispose or return to supplier)

• FAQ for customer’s queries GUIDELINES (2/3)

GENERAL STEPS WHEN CUSTOMER REQUESTS REFUND/ EXCHANGE

Listen to request and understand reason for refund/exchange

Check and verify if conditions are met (item condition, time from date of sales etc.)

Check and verify original receipt against item

Process the refund/ exchange, ensuring the following are entered correctly in the POS:

• Refund/ exchange Reason Code (if any as required by respective POS systems)

• Refund/ exchange price matches the value in the initial transaction receipt (including any discounts etc.)

NOTE: It is the same refund process as with any other front desk or F&B transaction

Cash: Reverse transaction and pay out cash to the guest

Credit card: Submit refund request to the bank to process and refund the cardholder’s account

Room charge: Remove charge

Document the refund transaction

• A duplicate copy of the Refund/Exchange receipt must be counter-signed by the manager on duty and the cashier to confirm that checks have been completed

• Ensure a signed duplicate copy of the receipt is kept for any end of day POS closing processing

Information repository

FREQUENCY

Update as needed

OBJECTIVES & BENEFITS

• Provide team members with access to all relevant business information

• Facilitate team member’s day-to-day execution of tasks

GUIDELINES

1. KPI targets for the period

2. Current promotions, events, competition and incentives (if any)

3. Reference FAQ sheets

4. Up-to-date Product information (outlining key selling points of products)

5. Up-to-date team member roster/ schedule

6. Up-to-date store floorplan

7. Up-to-date reference display photos (to help with restocking)

8. Up-to-date planogram

9. Evacuation procedures and safe meeting place

10. Emergency & crisis procedures

11. Business telephone lists (including but not limited to) : -

• Key suppliers

• Maintenance company/ team

• Cleaning team

• Emergency hotline

• Property security office

• Key Hilton Regional Head Office personnel

CHANNELS FOR INFORMATION ACCESS

Internal site (if any)

Mobile group chats (e.g., WhatsApp, WeChat, LINE etc.)

Noticeboard(s) in storeroom

Project management and team collaboration tools (1/2)

FREQUENCY As requested

TOOLS (1/2)

OBJECTIVES & BENEFITS

• Deliver a consistent client experience

• Ensure a clear and ethical framework for handling refunds and faulty products

Project management tools help managers and organizations plan, execute, and monitor projects more effectively, ultimately leading to improved project outcomes and greater efficiency. They enable collaboration within the team, help to visualize tasks and progress to keep the team on track, and are easy to use with practice.

When can these tools be used for retail operations management and planning?

SPECIAL PROJECTS SUCH AS…

• Store renovations

• New supplier sourcing

ROUTINE PLANNING OPERATIONS SUCH AS…

• Team member training (and refresher) planning (refer to Section 1.3avii. Training team members)

• Category strategy planning and execution (refer to Section 2.1a. Category strategy and product selection)

• Seasonal planning (refer to Section 2.1b. Seasonal planning)

TYPES OF TOOLS

There are many project management and team collaboration tools available on the market, some of the more widely used tools include the following: The next page provides a comparison of the tools

Project management and team collaboration tools (2/2)

client

Ensure a clear and ethical framework for handling refunds and faulty products

COMPARISON OF PROJECT MANAGEMENT AND TEAM COLLABORATION TOOLS

Below is a comparison of the free plans (paid upgrades also available) for some popular project management and team collaboration tools

Recommended

METRICS

Number of Workspaces

Number of tasks views (e.g., List view, gantt chart, calendar view etc.)

NOTE:

1. Workspaces are highest level in file hierarchy and task organization. At a store level, one Workspace can represent one department, or even a specific initiative

2. Boards/Spaces are generally subordinate to/belong to a larger Workspace (e.g., if Workspace is defined as special projects, one Board/Space can be on store renovation)

KPIs and performance reporting (1/2)

OBJECTIVES & BENEFITS

Provide a comprehensive view of performance, review against target set, and allow for data-driven decision making

01 02 03 04 05

PRINCIPLES FOR KPI SETTING

KPIs ARE SIMPLE

Select a few essential KPIs that are aligned to business objectives and key improvement areas – there is no need to track every single possible KPI and overcomplicate monitoring.

KPIs ARE REALISTIC THERE IS OWNERSHIP OF KPIs

Define, measure and understand baseline performance to guide setting of achievable targets.

Create accountability by clearly assigning personnel in charge of setting and tracking KPIs; they will help to ensure that actions are enforced.

KPIs ARE COMMUNICATED THERE ARE REVIEW MILESTONES

Foster a sense of shared purpose, a common understanding of goals and a culture of transparency by making key KPIs and performance visible to team members.

Set regular interim reviews for the progress against targets, to allow for timely intervention wherever necessary.

KPIs and performance reporting (2/2)

OBJECTIVES & BENEFITS

Provide a comprehensive view of performance, review against target set, and allow for data-driven decision making

Sales and performance reports help with data-driven decision making. Comparison of performance against previous periods (year-on-year etc.) can provide an objective perspective on progress.

COMMON FINANCIAL METRICS THAT ARE TRACKED AND REPORTED

Each report should consist of a few key financial metrics aligned to strategic goals as well as how revenues are generally reported in the property to leadership

METRIC HOW CAN THE METRIC BE USED?

Revenue

• Total: Revenue target

• Breakdown (by category): Determine the viability of a particular category

• Breakdown (by SKU): Determine the performance of individual item which will be used for further analysis (refer to 2.1a. Category strategy and product selection or 2.2a. Assortment optimization)

• Average basket size: Understand if customers are buying more from cross-sell/upsell/pricing strategy

Inspire the team by sharing a “big number” everybody can work towards

Profit

• Profit (total): Assess the overall financial performance of the store

• Cost (by category): Understand key cost drivers

NOTE: Cost allocation philosophy – Consider only marginal costs when calculating the profits, not including fixed costs that would continue to be incurred without retail operations (e.g., for those stores with existing F&B team members/managers, these labour costs have already been accounted for and therefore, reallocate a portion respective to the hours manned)

Beyond financial metrics, non-financial metrics are important to gauge store performance

COMMON NON-FINANCIAL METRICS THAT ARE TRACKED AND REPORTED

• Turnover rate

• Shrinkage (e.g., expiry, theft/ missing etc.)

INVENTORY MANAGEMENT

SUPPLIER PERFORMANCE

• Stockout % (optional as it can be difficult to track, team should weigh cost vs. benefits of tracking stockouts)

• Lateness of delivery

• Quality of delivery (e.g., whether items are delivered as agreed with no defects etc.)

CUSTOMER SATISFACTION

Profit per sq m

• Profit per sqm (overall or by section in the store): To compare retail profitability vs other spaces in the property or to identify sections within the store that generate most returns

Sales reports can be used to optimize store operating hours by detecting trends in number of transactions:

• Time of the day (i.e., morning, afternoon, night, midnight or any specific hours etc.)

• Day of the week (i.e., weekday versus weekends)

PROMOTIONAL CAMPAIGN (if relevant)

• CSAT and/or NPS

• Number of positive feedback received

• (Optional) Social media followership/ engagement

• (Optional) Online reviews

• AI tools e.g., ChatGPT can help with sentiment analysis

• Coupon / discount redemption rate

• Uplift in revenues/ profitability

Sales forecasting (1/3)

FREQUENCY

Annually

GUIDELINES (1/2)

OBJECTIVES & BENEFITS

Create a baseline for sales tracking against performance, as well as parameters for operations planning (e.g., quantities for reordering etc.)

A sales forecast can be used to estimate future sales at various levels of granularity, frequencies and over various time horizons. Although forecasts are a prediction of the future and accuracy of forecasts may vary wildly, to be useful, forecasts should be accurate enough to provide directional guidance to users.

PRINCIPLES OF FORECASTING

01 02 03

GRANULARITY FIT FOR PURPOSE

Forecasts can be done at an overall or individual SKU level depending on the objective for creating the forecast. Forecast at an aggregate level tends to be more accurate and less complex than SKU-level forecasting

A. Uses of overall sales forecasts (usually sales revenues)

• Financial planning and budgeting

• Target setting and tracking (forecasted goals versus actual sales)

• Operations and resource planning, including inventory and staffing (e.g., decision to either build up inventory during low period, or factor in increase in resources during peak periods etc.)

B. Uses of SKU-level forecasts (usually quantities)

• Guide product ordering of key SKUs (e.g., “A” category SKUs; refer to 1.2aii. Sales status categorization for more information), thereby preventing overstocking or understocking

TIME HORIZON

The further the time horizon, the more inaccurate the forecast is. The rule of thumb is to forecast up to 1 year of sales

FREQUENCY

Forecasting is not a one-time exercise, but managed actively with a process to update the data frequently to allow any model selected to capture new information – making forecasting more accurate

Sales forecasting (2/3)

FREQUENCY

As requested

OBJECTIVES & BENEFITS

• Deliver a consistent client experience

• Ensure a clear and ethical framework for handling refunds and faulty products

Forecasting methodologies

There is no single best forecasting method, select the most appropriate methodology for your needs. Comparing forecasts to actual realized figures can help determine the accuracy of the forecast. GUIDELINES (2/2)

HISTORICAL APPROACH

A method that uses historical data to predict future sales. This approach is useful when past sales data is readily available in a clean and consistent format for analysis

TECHNIQUES

• Year-on-Year Growth: The simplest approach; a growth benchmark % used to estimate retail’s growth (e.g., hotel’s overall growth)

• Moving Average: The avg. of the <x> past periods to get the next period’s forecast (e.g., avg. of the last 3 months)

• Exponential Smoothing: A forecasting method that gives more weight on the most recent data

Microsoft Excel has a built-in function for this (more information on the next page)

Decompose historical data1 into components to fully understand any underlying insights

Trend: Growing or declining (without seasonality)

Seasonality: Regular fluctuations (e.g., holidays)

QUALITATIVE APPROACH

A method that converts qualitative inputs to quantitative estimates. This approach is useful when there is no historical data (e.g., new product introductions, new launch of retail space)

TECHNIQUES

• Customer Surveys: Gauge their satisfaction, loyalty, and future buying intentions can help inform sales forecasts

• Proxy: Use the demand of a similar SKU that the store used to sell (e.g., use the demand of a can of Coca Cola to forecast demand of a can of Pepsi)

• Expert opinions: The experts' inputs can be from in-house (e.g., GMs, F&B Mgr. Commercial Directors) or external resources (if any)

• Industry reports/ publications: Utilizing industry-specific reports, publications, and market research studies can provide valuable information on market trends, customer behavior, and emerging opportunities

CAUSAL APPROACH

A method that seeks to explore relationships between factors to determine their relative impact. It is more useful for overall sales forecasting than SKU-level forecasting.

TECHNIQUES

• Regression models (Linear or multiple): (Example, non-exhaustive factors that can impact sales)

• Room occupancy

• Breakdown of guests versus non-guests

• Hotel types

• Seasons

NOTE: 1. To fully determine any trend or seasonality within a time series would require the data sets to cover a longer timeframe, minimally 2 years

Sales forecasting (3/3)

FREQUENCY

As requested

OBJECTIVES & BENEFITS

• Deliver a consistent client experience

• Ensure a clear and ethical framework for handling refunds and faulty products

Try it out! The template provided allows for users to estimate forecast at both a

A. Overall sales forecasts (sales revenues) as well as at a

B. SKU level (quantities) for the next 12 months

There are 2-3 main parameters that should be changed in the template

1. SKU identifier (for SKU-level forecasts, not needed for overall sales forecasts)

2. Starting date (key this in “dd mmm yyyy” format e.g., 01 mar 2021)

3. Sales data

• Aggregated by month (i.e., total sales of SKU in the month)

• Should be recorded in quantities of the smallest unit available for sale (e.g., 1 bar of chocolate, 1 can of beer)

• There should be 2 years' worth of data points

NOTE: If there are insufficient data points, do consider using alternative historical forecasting approaches such as projections using historical year-on-year growth or moving average forecasting

Introduction to Excel’s built-in Forecasting function

The template is built with Microsoft Excel’s function, FORECAST.ETS. It is a function that is built on exponential smoothing and adjusts forecast with seasonality detected in the dataset (if any)

Pros: Excel can extrapolate missing fields

Cons: Excel cannot automatically detect promotional periods; users need to manually remove datapoints that might represent inflated sales due to promotions

NOTE: Excel will adjust for only up to ~30% of missing fields before forecast becomes inaccurate

Plotting a simple line chart can help visualize seasonality over time

TOOL: FORECAST TEMPLATE

Inventory management overview: from receiving to sales to returns

ILLUSTRATION OF INVENTORY MANAGEMENT PROCESSES

KEY ACTIVITIES

Organize storeroom –designated space for receiving

Denotes an update required to systems - either manually or automatically Inspect goods on quality, quantity and expiry dates

Create SKU identifier (for new products only)

Organize storeroom –main storage area

Conduct stock and tally with system

Check expiry dates and rotate facing

Reorder when stocks are low

(REFUNDS AND EXCHANGES)

Organize storeroom –designated space for unsellable returns

Process returns (e.g., contact supplier)

SYSTEM(S)/ TOOL

To support inventory management

Accept goods into main storage area

Check expiry dates

Report shrinkage (from theft, expiry, defects etc.)

management systems (if any)

Store Inventory Management

This section contains guidance on how to tag and classify products, manage store inventory and storeroom(s) as well as manage expiring products

SECTION CONTENTS

a. PRODUCT IDENTIFICATION AND TAGGING

i. Create a Stock Keeping Unit (SKU)

ii. Sales status categorization

b. INVENTORY MANAGEMENT

i. Storeroom setup and management

ii. Inventory level management

iii. Annual stock take

iv. Negative stock (in the system)

v. Shrinkage adjustment

vi. Review shrinkage report

c. EXPIRY MANAGEMENT

DoubleTree by Hilton Guangzhou, China

Create a Stock Keeping Unit (SKU)

FREQUENCY

Create for every new product

GUIDELINES

OBJECTIVES & BENEFITS

• Create a consistent and standardized set of understanding for product tagging1

• Minimize confusion and errors

WHAT IS

A STOCK KEEPING UNIT (SKU)?

• A unique product identifier used in an internal inventory management system to distinguish each individual product

• SKUs can comprise of an either set of letters, numbers or a combination of both

• SKUs are used to identify characteristics about each product, such as category, manufacturer, brand, style, color, flavor etc.

• SKUs should be human readable – employees should not need any equipment to read them

• There are no fixed rules on the length of each identifier, but it should not be a full spelling out of the descriptions

Chips à CHIP

Plasters à PLAS

Noodles à NDL

Lays à LAYS

Hansaplast à HSP

Nissin à NSN

Sales status categorization (1/2)

FREQUENCY

At least once a year

GUIDELINES (1/2)

OBJECTIVES & BENEFITS

• Evaluate products in an objective manner

• Help with decision making in areas such as assortment rationalization and product placement in stores

Sales status of an SKU shows the life stage (Active vs. Inactive) and popularity of a product for the store

STATUS –ACTIVE PRODUCTS

A: Fast Items

B: Core Items

C: Slow Mover

SL: Seasonal product

NP: New Product

DESCRIPTION

• Represents SKUs that contribute ~70% of the sales turnover

• Represents SKUs that contribute ~25% of the sales turnover

• Represents SKUs that contribute less than ~5% of the sales turnover

• Represents product ordered only special seasons (e.g., mooncakes, Christmas cakes etc.)

• A new product that is non-seasonal or limited edition will maintain this status for 3 months

• After 3 months, article will be retagged with a new sales status

HOW TO CALCULATE PRODUCT STATUS FOR A/B/C CATEGORIES?

01 02 03

TAG EACH SKU TO A CATEGORY

• Discover our city

• Stay connected

• Simple pleasures

• Frozen

• Chilled

• Hot

SUM UP THE SALE OF EACH SKU, FOR THE PAST 12 WEEKS

NOTE: Exclusion rules to remove special promotional events periods (e.g., promotion campaigns)

RANK THE TOTAL SALES OF EACH SKU WITHIN CATEGORY

• A = TOP 70% of cumulative sales

• B = NEXT 25% of cumulative sales

• C = LAST 5% of cumulative sales

Sales status categorization (2/2)

FREQUENCY

At least once a year

OBJECTIVES & BENEFITS

• Evaluate products in an objective manner

• Help with decision making in areas such as assortment rationalization and product placement in stores

GUIDELINES (1/2)

MANAGEMENT OF INACTIVE PRODUCTS

Some of these inactive SKUs may still be in kept in the storeroom while pending further action, and thus may still be tagged with the following statuses in the inventory system

STATUS –INACTIVE PRODUCTS

Delisted

DESCRIPTION

• A normal deletion of an SKU listing

• Items that are maintained in respective financial system (e.g., CheckSCM) while the store continue to sell the SKU until it is depleted

NOTE: Refer to existing Finance procedures/ policies on how to delist items

• SKUs tagged with this status while awaiting confirmation/ collection from supplier 01 02

Returned to Supplier

Storeroom setup and management (1/2)

FREQUENCY

At least once a year

OBJECTIVES & BENEFITS

• Evaluate products in an objective manner

• Help with decision making in areas such as assortment rationalization and product placement in stores

GUIDELINES (1/2)

STOREROOM LAYOUT

• Besides the main inventory storage area, there are some areas within the storeroom that should be clearly demarcated and labelled:

• Receiving area – Cartons from delivery must not obstruct entry and exit

• Outgoing area – Area used for returns to warehouse or vendor

• Separate area for defective/ expired goods – should not be mixed with selling stock

There are two general approaches to consider when selecting a storeroom layout

APPROACH 1: BY PRODUCT STATUS

• Faster moving/best selling SKUs to be stored at eye level and near the front of storeroom for quicker replenishment

• Slower moving stocks can be put away deeper inside the storeroom

• This approach is recommended when there is a significant difference is replenishment rates between products in store

APPROACH 2: BY MIRRORING STORE LAYOUT

• Align to the layout of the selling floor for ease of identification of sections

• Similar items are placed together for ease of category identification (e.g., packaged foods, gifts etc.)

• The layout would need to be updated whenever there is a floorplan change

• This approach is recommended when there is sufficient storeroom space to replicate layout

Given space constraints in many hotels, inventory may be stored in multiple places, or even within on the selling floor. If storing extra stock on the selling floor, a good practice would be to store items in physical proximity to where they are displayed.

Storeroom setup and management (2/2)

FREQUENCY

At least once a year

GUIDELINES (1/2)

OBJECTIVES & BENEFITS

• Evaluate products in an objective manner

• Help with decision making in areas such as assortment rationalization and product placement in stores

INVENTORY ORGANIZATION

• Storage containers should be used to store items and should be clearly labelled

• Heavy items should be placed on low shelves while lighter items are on higher shelves

• There should be a safe clearing between the merchandise on the top shelf and the ceiling to ensure there are no obstructions to sprinkler heads etc.

• Personal belongings or food and drink should not be allowed into the storeroom

Inventory level management (1/2)

FREQUENCY

Recalculate at least twice a year

GUIDELINES (1/2)

OBJECTIVES & BENEFITS

Define an inventory levels management structure; either through a fixed reorder quantity model or a periodic inventory review model

WHAT IS INVENTORY LEVEL MANAGEMENT?

Excess inventory can incur unwanted costs such as loss due to obsolesce, storage costs, and ultimately impact working capital. However, having too little inventory can result in lost sales from stockouts and loss of customer goodwill. This section will provide guidance on determining optimal inventory reordering quantities and safety stock levels

APPLICABILITY

These guidelines are applicable for ABC permanent SKUs and not applicable for SL (seasonal & limited edition) products (refer to 1.2aii. Sales status categorization for more information on ABC and SL SKUs). They also do not apply to prepared food/drinks.

NOTE: This process step is to be calculated at an individual SKU level, and stores can choose to prioritize the top 20% SKU

PROCESS (1/3)

DEFINE BASELINE PARAMETERS

PARAMETER DESCRIPTION

Average supplier lead time

Average demand

Standard deviation of demand

Inventory review period

Desired service level

z of desired service level

• (Calculated) average time taken between order sent to supplier and receiving the order

• (Calculated) average demand within a specified time period

• (Calculated) standard deviation of demand within a specified time period

• (Pre-defined) a time between two periods to verify the inventory count

• (Pre-defined) in %, the expected probability of not facing stock-out (e.g., 95%) ; higher service levels = higher safety stocks = less stock outs

• (Calculated) in Microsoft Excel, key in “=norm.s.inv(<desired service level in percentage>)”

NOTE: Ensure parameters are in the same unit of time prior to calculations (days, weeks, or months)

Inventory level management (2/2)

PROCESS (2/3)

A predetermined order quantity will be triggered/ alerted upon reaching a certain predetermined reorder point (ROP), regardless of the interval between orders

STOCK LEVEL

This represents the

This represents the average units sold while awaiting replenishment

POINT (ROP)

This represents the quantity when a reorder is triggered and submitted to supplier Safety stock + demand during lead time

REORDER QUANTITY

This represents the reorder quantity ordered. Given the low volumes in hotel retail operations, this will likely be the Minimum Order Quantity (MOQ)

PROCESS (3/3) OPTION 2: PERIODIC REVIEW MODEL

Inventory in the system is to be reviewed at pre-defined regular intervals (e.g., weekly, monthly, quarterly etc.) and thereafter an appropriate reorder quantity (Q) is ordered after each review, with order quantities based on a calculated target inventory level

AVERAGE DEMAND BETWEEN EACH REVIEW PERIOD

This

SAFETY STOCK LEVEL

This

TARGET INVENTORY LEVEL

This represents the order up to level

demand between each review period + safety stock level REORDER QUANTITY

Inventory level management (2/2)

ILLUSTRATIVE EXAMPLE OF CALCULATION (PERIODIC REVIEW MODEL)

INPUT

PARAMETERS (calculated, predefined and estimated)

EXAMPLE: PERIODIC REVIEW

Inventory in the system is to be reviewed at pre-defined regular intervals (e.g., weekly, monthly, quarterly etc.) and thereafter an appropriate reorder quantity (Q) is ordered after each review, and order up to the calculated target inventory level

BETWEEN EACH REVIEW PERIOD

STOCK LEVEL

This represents the recommended safety stock level to hold to handle variations in demand

This

Annual stock take (1/2)

FREQUENCY Annually

OBJECTIVES & BENEFITS

• Inventory accuracy – system record tallies with on hand inventory

• Accurate figures for end of financial year for business or tax purposes

GUIDELINES (1/2)

WHAT IS A STOCK TAKE?

A stock take (or inventory count/ physical inventory), is a process in which a store physically counts and records all the items or products it holds in its inventory (both on the selling floor and in the storeroom) at a specific point in time. This is usually done with help from the Finance department.

APPLICABILITY

Stock takes apply to packaged items in store (does not include prepared food and drinks)

GUIDELINES

• Usage of scanners for stock counting where possible is highly recommended

• If team member identifies any discrepancies during the first count, a recount should be performed to verify

• Any final discrepancies will be reported to F&B Manager and Finance for shrinkage adjustments and reporting

TOOL: STOCK TAKE FORM TEMPLATE

DOCUMENTATION

• Components of a Stock Take Form include:

• Name of team member performing count

• Date of stock take

• Item code/ product identifier

• Item name

• Quantity in system

• Quantity on hand (counted – to be filled)

• Discrepancies

• Remarks (if any)

NOTE: Only use the provided Microsoft Excel template when there is no access to existing Stock Take Forms in CheckSCM

Addressing key questions in retail operations & management….

GUIDELINES (2/2)

CYCLE COUNTING (ALTERNATIVE TO ANNUAL STOCK TAKES)

• Instead of conducting an annual stock stake, stores may choose instead to adopt Cycle Counting

• Unlike traditional annual stock takes where the entire stock is counted at once, in cycle counting, a subset of the total inventory is counted

• The benefits of cycle counting include the earlier discovery of issues, improved operational efficiency and reduced need for time-consuming and potentially disruptive annual physical counts

• Cycle counting allows store to better understand their inventory as well as discover issues with inventory early

ALIGNING CYCLE COUNTS FREQUENCIES TO SKU POPULARITY

• For more efficient cycle counts, one best practice is to use item popularity to guide cycle count frequency (refer to 1.2aii. Sales status categorization for more information on ABC SKUs)

• Reference frequency:

• A (Fast Moving Items) – Every quarter

• B (Core Items) – Every six months

• C (Slow Movers)– Once a year

BEFORE THE STOCK TAKE

• Ensure that stock on hand in the system/ physical records is up to date, especially if the store has just performed goods receiving

DURING THE STOCK TAKE

• Perform a first count

• Fill up the Stock Take Form

• Items inside opened (carton) boxes must be individually counted

• Count items placed in all possible locations on the selling floor and storeroom. (i.e., Behind cash desk, drawers etc.)

AFTER THE STOCK TAKE

• Once the F&B and Finance representatives are satisfied with the result of the count and the investigation, a Shrinkage Report should be filled and submitted to F&B Manager for final approval and to sign off the Stock Take Form (refer to 2.2bvi. Review shrinkage report)

• Thereafter, an authorized Finance personnel is to perform needed adjustments in the system

Negative stock (in the system)

FREQUENCY Daily

OBJECTIVES & BENEFITS

• Inventory accuracy – system record tallies with on hand inventory

• Effective stock replenishment (if using automated software)

GUIDELINES

WHAT IS NEGATIVE STOCK?

Negative stock refers to a situation where there is a difference in a store’s recorded inventory levels and actual stock on hand such that records indicate that it has fewer items in stock, perhaps even showing a negative quantity. Various reasons can cause this discrepancy, but it is often a sign of issues in inventory management and should be addressed promptly.

WHAT CAUSES NEGATIVE STOCK?

• Delivery was not received in the system correctly

• Item was sold before it was accepted into the system (e.g., from a delivery that has not been received in the system)

• Wrong count on a previous Stock Take/ Cycle Count (if applicable)

• System glitches (this tends to be rare)

WHAT ARE THE ACTIONS REQUIRED?

• Any SKU in stock with a “0” or negative quantity found in the system should be investigated immediately

• Upon approval, of investigation results, F&B and/or Finance personnel to make the necessary stock adjustment in the system based on the actual quantity counted

• Implement controls to prevent negative stock from happening again

Shrinkage adjustment (1/2)

FREQUENCY On demand

OBJECTIVES & BENEFITS

• Enable inventory reconciliation – system record tallies with on hand inventory

GUIDELINES

WHAT IS SHRINKAGE?

Shrinkage is the loss of inventory that occurs between the time it is received by a business and the time it is sold to customers and can be caused by a variety of factors including defects, expiry, theft and breakage/destruction in store

WHAT CAN QUALIFY FOR SHRINKAGE ADJUSTMENT?

REASONS

Defective

Expired

Missing/ theft

Breakage/ destroyed in store

Transferred to another department within the hotel

DESCRIPTION

• Defective products includes returns from customers due to quality issues

• These should be charged back to relevant supplier

NOTE: This is applicable for products with quality issues and is not to be confused with “Damaged upon Delivery” which should be promptly documented and returned upon receiving

• Expired goods that can no longer be sold/ consumed, may include food wastage for foods prepared and previously recorded in inventory

• Discrepancies in quantity highlighted during Cycle Counts or Annual Stock Take

• Evidence of theft such as empty boxes or packaging found in store or signs of break-ins

• Spoilt on selling floor during retail operations (e.g., bottles breaking, or biscuits shattered after product is accidentally thrown on the floor)

• Inventory transferred to other departments within the hotel for use before expiring (e.g., serve as guest amenities or in the breakfast/dinner buffet)

Shrinkage adjustment (2/2)

•

ACTIONS REQUIRED

1. Adjust the quantity in inventory records (physical or system) and finance system to tally with on hand inventory

• Use the correct reason code (if any)

• Only authorized team member(s) can adjust records with approvals from the F&B Manager as well as Finance

2. Update the Shrinkage Report for the month (refer to 2.2bvi. Review shrinkage report)

3. For expired or broken products, dispose of items properly from store premises (For defective products, if applicable) Return product(s) to supplier(s) and ensure charge back is completed

Review shrinkage report

• Monitor shrinkage to identify stocks with issues such as high rates of expiry or theft and enable mitigating actions to be taken to prevent further losses

GUIDELINES

SHRINKAGE REPORT AND ANALYSIS

• A Shrinkage Report documents the inventory shrinkage experienced by the store over a certain period (in this case, over a period of a month)

• Director of F&B/ F&B Manager to provide guidance on the total Shrinkage KPI/ threshold of each month to the store

• Outlet Manager is to investigate any shrinkage of any item that is found to be excessive (compared to history or trend) or exceeds a pre-determined threshold

• Respective Outlet Manager to create an action plan/ implement controls (where possible/practical) to monitor and control the identified shrinkage

• The completed Shrinkage Report must be submitted to Director of F&B/ F&B Manager for review every month

TOOL: SHRINKAGE REPORT TEMPLATE

Expiry management (1/2)

Proactively optimize inventory levels and quality

Conduct routine sample inspections on the expiry dates of incoming orders, ensure that products have a reasonable expiry dates before accepting

Continuously monitor expiry which allows for early detection and management Implement preventive measures through an organized inventory management strategy

Expiry management (2/2)

•

GUIDELINES (2/2)

ADDITIONAL GUIDELINES ON PREVENTIVE MEASURES AND CONTINUOUS MONITORING

Different product categories in the store can have varying shelf lives; we can group them broadly into 2 categories, Non-edibles and Packaged foods/drinks, each with recommended days before mitigating actions should be taken:

CATEGORIES NON-EDIBLES

Example of products

• Toiletries (e.g., shampoos)

• Scents

PACKAGED FOOD/ DRINKS

• Snacks

• Canned drinks

Recommended days before mitigating actions 365 days 60 days

An entry in the tool is made for each item that has a different date

There are 2 recommended options to track and monitor expiry dates of products

OPTION 1: MONTHLY STORE CHECKS

Do a monthly sample check in-store to examine expiry dates (especially for items in the packaged food/ drinks category)

• Inform store manager immediately if the products fall within the recommended period before expiry so that mitigating actions can be taken in a timely manner

Having the monthly check on the same day of every month (e.g., first day of the month) can help make this a routine for team members and reduce the likelihood of missing a check.

• One entry/line is needed for each SKU with a different expiry date within the delivery order ,

• Adding a batch number to differentiate between same SKUs with different expiry dates is optional

NOTE: SKUs with no expiry dates (e.g., umbrella, books etc.) do not have to be included

• Tool will calculate if SKU requires urgent expiry management and flag out SKUs that are “close to expiring” based on pre-defined recommended days before mitigation actions (e.g., 60 days for food items)

Assigning a batch number can help increase the speed of identifying expiring products within each SKU as there may be multiple batches with different expiry dates for each SKU. However, any batch number assignment should be complemented by tagging/ separation by batch of products in the storeroom, so team members can identify when earlier batches of products are in storage, on display or otherwise sold and hence can be removed from the tracker.

OPTION 2: USING THE EXPIRY TRACKER TEMPLATE

Bringing the customer journey to life: exploring an unmanned shop by the lobby

Where can I buy some souvenirs?

AWARENESS OF RETAIL SPACE

CHLOE

LEISURE TRAVELERS

Chloe is an avid traveler that enjoys exploring new cultures. As Chloe is nearing the end of her trip, she decides to bring home a memento that will remind her of the fond memories of this holiday.

This store looks bright, neat and inviting! Is there anything of interest to me here?

01 INTEREST IN EXPLORING STORE

(During check-in) we have a shop in the lobby, do take a look!

“The store looks amazing and there’s lots of interesting things on display”

• In-room note in minibar

• Signages around hotel premises

• In room QR code catalogue/ menu

“They have a Starbucks machine here as well – this is something different from the canned coffee from the 7-11 nearby”

CONSIDERATION OF PURCHASE

06 REVISIT

There’s no one in the store, how should I pay?

03 MAKING THE PURCHASE

“This keyring seems well made”

“According to these story cards, the keyrings are made from 100% recycled plastic”

“I love how this tote bag features a print by a local artist! The Hilton logo is a nice touch”

I really love this purchase! (or not)

04 POST-PURCHASE AND LOYALTY

“Looks like I can pay for my coffee with a credit card”

“For the rest of the items I will have to pay at the front desk, or I can use this QR code to pay online”

“Oh nice, I can get a mini chocolate bar after scanning this QR code and completing a survey…”

“Overall, I would rate the store 4/5 – I wish there was a larger selection of cup noodles, I didn’t like any of the ones on offer”

Bringing the customer journey to life: exploring an unmanned shop by the lobby

Where can I grab a quick bite?

BUSINESS TRAVELERS

John is a frequent business traveler. He is constantly on the go; taking calls and meeting clients.

It’s been an arduous flight and taxi ride to the hotel, he’s hungry and wants to grab a quick bite while he prepares for an important client meeting tomorrow.

The sandwiches look fresh and tasty Is this product unique?

06 REVISIT

What are some of my payment options?

Can I get rewards as a Hilton Honors member?

AWARENESS OF RETAIL SPACE

01 INTEREST IN EXPLORING STORE

(During check-in) … you can grab coffee and quick meals at the cafe!

• In room directory

• Signages around hotel premises

• In room QR code catalogue/ menu

“The cakes on promotion look good – maybe I’ll treat myself to one tomorrow…”

“That’s a nice Christmas display… I think my client might like these Christmas cookies – it’s in a lovely jar too”

CONSIDERATION OF PURCHASE

The BLT is the best seller but if you’d like to try something new, the cranberry turkey ciabatta melt is our seasonal special!

Would you also like to get a drink with your sandwich Sir?

03 MAKING THE PURCHASE

04 POST-PURCHASE AND LOYALTY

How would you like to pay? You can also charge the payment to your room

Are you a Hilton Honors member?

If you sign up now, you can get a discount immediately on this purchase

Service Operations

This section contains guidance on how customer facing team members should interact with customers and how to collect and respond to customer feedback

SECTION CONTENTS

a. CUSTOMER SERVICE GUIDELINES

i. Greeting customers

ii. Helping customers while they shop

iii. Helping customers checkout

iv. Self-checkout for unmanned stores

v. Handling customer complaints

vi. Handling customer compliments

vii. Training team members

b. CUSTOMER FEEDBACK AND SATISFACTION MEASUREMENT

i. Feedback channel options

ii. Additional guidelines for customer satisfaction surveys

Greeting customers

FREQUENCY Every time a customer walks into the store

OBJECTIVES & BENEFITS

• Provide team members with confidence in providing in-store service to deliver a consistent and exceptional Hilton customer experience

GUIDELINES (1/2)

For manned stores, greeting customers as they enter a store is a crucial aspect of creating a welcoming atmosphere and setting the right tone for the customer’s shopping experience

GUIDELINES ON GREETING CUSTOMERS

• Greet customers with a simple, friendly but non-invasive greeting

Hello, good morning/ afternoon/ evening, welcome to [store name]

• Use a professional, polite yet enthusiastic tone

• Greet customers with a smile and eye contact, and if culturally appropriate, a bow/nod

Go the extra mile if you recognize a returning customer; you can use this information to personalize your greeting e.g., “Welcome back”

Helping customers while they shop (1/2)

FREQUENCY

Every time a customer walks into the store

OBJECTIVES & BENEFITS

Provide team members with confidence in providing in-store service to deliver a consistent and exceptional Hilton customer experience

GUIDELINES (1/2)

Helping customers who are browsing in the store and providing thoughtful recommendations is a valuable part of the retail experience and can increase customer satisfaction as well as sales

GUIDELINES ON HELPING CUSTOMERS WHILE THEY SHOP

• Be attentive but not intrusive, observing the individual customer’s body language for cues on their preferences

• After greeting customers, allow customers some space before approaching them

• Pay attention to their body language and expressions – do they look like they are simply exploring or are they looking for something in particular? Do they seem like they are looking for assistance?

NOTE: If you notice a customer looking at a specific product for an extended period or appearing confused, this might be a cue that they would appreciate help.

• Offer assistance if it seems suitable

Is there anything specific you’re looking for today? May I help you with anything today?

• If customer prefers to browse independently, say “sure, feel free to let me know anytime if you need any help”

• Practice active listening

• Pay close attention to customer’s questions or their answers to your questions

• Ask follow-up questions to gather more details

• Based on their response, tailor any recommendations/ suggestions without being pushy

• It might be helpful to keep in mind best sellers/ customer favorites should they ask for recommendations

• Inform customers of ongoing promotions/sales or special events

• Especially if they appear to be interested in items on promotion/ sale

Helping customers while they shop (2/2)

FREQUENCY

Every time a customer

OBJECTIVES & BENEFITS

Provide team members with confidence in providing in-store service to deliver a consistent and exceptional Hilton customer experience

GUIDELINES (2/2)

• Suggest complementary items

• For example, if the customer has selected a pastry, follow up with “would you like anything to drink”?

• Provide information on the products when it seems appropriate to do so

• Provide a quick and clear summary of relevant product information

• Share the stories behind the products, including unique brand stories and/ or any causes it might be supporting such as supporting local communities or environmental sustainability

• CASE STUDY: HGI Serangoon uses story cards used in unmanned shop to help explain product stories to customers

Note: special attention should be paid to hygiene; hand sanitizers may make customers more comfortable towards trying products

• Express enthusiasm and confidence in the store’s products

• Express enthusiasm for the products recommended and display confidence in their quality and suitability

• Offer assistance with carrying items

• Especially if a customer looks like they might be struggling to carry items or will be browsing for a while, offer assistance with carrying items to the checkout counter

• Thank and invite them back

• Regardless if a customer leaves with or without purchasing, express gratitude for their visit, and invite them to return to the store in the future

Thank you, we hope to see you again!

Prepare and place shopping baskets at store entrance so that customers can notice and use them; team members can also direct customers to baskets, or pass them one if customers missed them

Helping customers checkout

FREQUENCY

Every time a customer decides to checkout their purchases

GUIDELINES

OBJECTIVES & BENEFITS

Provide a pleasant, efficient and environmentally friendly checkout experience to customers

Helping customers check out smoothly and efficiently is an important part of the retail experience

GUIDELINES ON CHECKING OUT

• Greet customers with a friendly demeanor as they approach the checkout counter

NOTE: Thank them for waiting if they have been waiting in a queue

• Be prepared for small talk and to engage customers in friendly conversation

NOTE: This may be more common with guests from certain countries

• Scan and input items efficiently, be careful and gentle when handing delicate/fragile items

NOTE: Be prepared to provide information on exchange and return policies

• Double check that discounts/ promotions have been applied accurately

• Ask about Hilton Honors loyalty program (if the store offers benefits for Hilton Honors members)

This is a good opportunity to drive membership program sign up

• Ask customers their preferred payment method

• Ask customers if they would like a receipt and or a paper bag(s)

• Bag items neatly

• Hand items over to the customer and thank them for the purchase

NOTE: in some Asian cultures it is more polite to use two hands to collect or hand over items

Ask customers if they need help carrying the items to the transport area especially if they have made a large purchase and look like they might struggle

Self-checkout for unmanned stores

FREQUENCY

Every time a customer decides to checkout their purchases

GUIDELINES

OBJECTIVES & BENEFITS

Provide a pleasant, efficient and easy-to-use checkout experience for customers of unmanned shops

Pay at front desk POS

CHECKOUT AT FRONT DESK QR SELFCHECKOUT PAY AT MACHINE

Scan QR to check out via an online store

• Customer service provided

• May include integration with HH1 program

• Includes cash transactions

• Reduces manpower burden on front desk

• May include integration with HH1 program

• Additional manpower burden on front desk; esp. for properties where manpower is already lean

SELF-CHECKOUT KIOSKS

Payment first before product dispensed (e.g., Self checkout systems on Starbucks coffee machines, vending machines)

Unmanned self-checkout machines (commonly used in grocery stores)

• Reduces manpower burden on front desk

• Prevents theft

• Cumbersome if there is a need to key in credit card details

• Requires additional Hilton-approved software

• Limited to machine dispensed products

• No integration with HH1

• No integration with hotel’s payment gateway

• Reduces manpower burden on front desk

• May include integration with HH1 program

• Expensive to invest

• Checkout machine takes up significant space

Handling customer complaints (1/2)

• Provide team members with confidence in handling customer complaints in a professional manner

• Resolve customer’s complaint amicably and avoid unpleasant misunderstandings with customers

When faced with a customer’s complaint, it is crucial to maintain a calm and professional attitude, regardless of the tone of the complaint. Do not take the complaint personally, as guests are more likely to be upset at the issue.

KEY CONSIDERATIONS

• Address customer’s complaints as soon as possible

• Team members should be empowered to handle complaints, but they can escalate to the supervisor on duty/ F&B manager who would be ultimately responsible for handling complaints from customers

• Whenever possible, complaints should be handled away from the POS so that transactions for other customers can continue

the customer for their patience and understanding

customer’s complaint and learn from it

Handling customer complaints (2/2)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

GUIDELINES (4/11)

STEPS TO HANDLE A CUSTOMER’S COMPLAINT (DETAILED STEPS)

01 02 03 04 05

LISTEN ATTENTIVELY AND ACTIVELY

ACKNOWLEDGE THE COMPLAINT AND APOLOGIZE SOLVE THE PROBLEM, TAKE PROMPT FOLLOW UP ACTIONS

THANK THE CUSTOMER FOR THEIR PATIENCE AND UNDERSTANDING WHILE THEY WAIT FOR THE PROBLEM TO BE RESOLVED

• Give the customer your full attention and listen without interrupting

• Understand why and how their expectations have not been met

• Ask clarifying questions to better understand the situation

• Let the customer know you understand their complaint

• Apologize for the situation, regardless of what caused the situation and whether its in your control.

Express empathy for their disappointment and frustration

I'm sorry to hear about the problem you've encountered, and I apologize for the inconvenience

• Look to reach an agreement. Propose practical and effective solutions; if appropriate, ask the customer for suggestions

• If an agreement cannot be reached and the customer continues to dispute, escalate it to the supervisor on duty/ F&B Manager

NOTE: Ensure adherence with company policies but also consider going above and beyond to exceed customer’s expectations

• Ensure the customer is satisfied with the resolution

• Ask if there is anything else you can help them with

Once again, we would like to apologize for the inconvenience. Is there anything else we can help you with?

DOCUMENT THE CUSTOMER’S COMPLAINT AND LEARN FROM IT

• Ensure all complaints are documented and used to improve

NOTE: If there is a recurring complaint, managers should take time to analyze root causes of these issues and take steps to address them

Handling customer compliments

FREQUENCY

Whenever a customer pays a compliment

OBJECTIVES & BENEFITS

• Provide team members with confidence in accepting customer compliments graciously

• Strengthen customer relationships and foster a positive atmosphere in the store

GUIDELINES

Accepting compliments from customers graciously is a key but often overlooked part of providing excellent customer service

GUIDELINES ON HANDLING CUSTOMER COMPLIMENTS

• Express sincerity and gratitude for their compliment with a “thank you” and a warm smile

• If the compliment is specific, be specific in your response

That’s a beautiful Christmas display!

Thank you, that’s very kind of you. Our team takes pride in putting together seasonal displays for our customers and we are delighted to know you like it

• Respond with humility and avoid appearing boastful or proud, but refrain from self-deprecating comments

• Keep your responses customer centric and focus on recognizing the customer’s kindness

We’re delighted to hear you had a great experience

Your kind words mean a lot to us

• Don’t overwhelm the customer

• While it's important to acknowledge the compliment, avoid prolonging the interaction or overwhelming the customer with excessive responses. Keep it concise and respectful of their time.

• Use compliments to motivate the team

• Document and share compliments with the team so it can serve as motivation

• Documenting compliments can also be helpful for management to understand what is working well for customers and what resonates

Training team members (1/2)

FREQUENCY

• Refresh training as needed

• Ensure new joiners are trained

OBJECTIVES & BENEFITS

Ensure team members are trained in customer service and are provided with the support they need to succeed

GUIDELINES (1/2)

Training is not a one-time event but an ongoing process – regular refreshers are needed to maintain excellent customer service

KEY CONSIDERATIONS (1/2)

• Assign a team trainer/ department trainer to ensure all relevant team members (for both manned and unmanned stores) are trained on relevant duties

• Ensure new team members are given the training they need

• Create and refer to a “Job Skills Checklist” which summarizes relevant duties for team members

• Train team members on key topics such as

• Customer service guidelines (including escalation protocols)

• Product knowledge (regularly updated as needed)

• Cashiering and POS management, including manual inputs for transactions with promotions

• In-store operations (e.g., replenishing shelves whenever empty, adherence to Visual Merchandising standards)

• Ensure team members are familiar with how to access reference materials (refer to 1.1bi. Information repository)

• Reference photos/planogram for visual merchandising/ product displays/ shelf replenishment

• Reference FAQ sheets: outline frequently asked customer questions and suggested response

• Key contacts in the event of emergencies

Training team members (2/2)

FREQUENCY

• Refresh training as needed

• Ensure new joiners are trained

OBJECTIVES & BENEFITS

Ensure team members are trained in customer service and are provided with the support they need to succeed

GUIDELINES (1/2)

Training is not a one-time event but an ongoing process – regular refreshers are needed to maintain excellent customer service

KEY CONSIDERATIONS (2/2)

• Provide channels for both customer and employee feedback to enable continuous improvement

• Team members should be trained to document customer feedback and queries

If there are multiple documented comments of customers asking e.g., “do you sell coffee?” managers can take that as an indicator of demand and adjust offerings according (refer to 2.1a. Category strategy and product selection)

• Organize regular feedback sessions for employees to discuss challenging situations with managers and share successful strategies with their colleagues; collate some of these best practices to be shared

Ensure there are employee recognition programs to acknowledge team members that have delivered excellent customer service; top performing employees receives recognition, and new employee can learn from them

Effective training methodologies that can be included in training

1. Real-life scenarios: use example of real customer interactions, both positive and negative to teach effective responses

2. Role-playing exercises: simulate scenarios for employees to practice responding to different customer situations

3. On the job training: pair a more senior team member with new team members to guide them as they learn on the job

Feedback channel options

• As needed OBJECTIVES & BENEFITS

Identify key improvement areas concerning retail operations

Besides official Hilton customer satisfaction surveys, there are many other ways properties can obtain customer feedback on retail operations

• Actively document feedback or questions given by customers

• Train team members to ask for feedback during in-person interactions when appropriate

• Social media can also be used to solicit feedback through questions and polls (only if such social media interactions would be aligned with the hotel’s branding) DIGITAL FEEDBACK FORMS IN –PERSON FEEDBACK REVIEW PLATFORMS AND SOCIALS

• Monitor reviews and feedback on review platforms and social media

• In-store QR: Signage inviting customers to provide feedback "We always appreciate feedback from our valued customers. If you have any suggestions for improvement, please feel free to share.”

• SMS/email lists: possible to retrieve details from online orders e.g., mooncakes, Christmas cakes

NOTE: Consider if incentives (e.g., discounts for next purchase, samples etc.) are needed to drive feedback collection – these can also help drive follow-on sales

Additional guidelines for customer satisfaction surveys (1/4)

GUIDELINES (1/2)

MEASURING OVERALL CUSTOMER EXPERIENCE (CX)

CSAT and NPS are two commonly used and complementary customer experience metrics which are also often used together to measure overall customer experience.

CUSTOMER SATISFACTION (CSAT) NET PROMOTER SCORE (NPS)

What does it measure?

How it is calculated

Measure of how satisfied customers are with a recent experience and/ or purchase

% of “satisfied” or “very satisfied” respondents

Measure of customer’s general sentiment and longer-term loyalty towards a brand

% Detractors / % Promoters

Whereby

Detractors: (those who rated “1-3” on a 5point scale) and Promoters (those who rated “5” on a 5-point scale)

AREAS TO POTENTIALLY SEEK DETAILED FEEDBACK ON

Consider capturing some other basic customer information (e.g., nationality, gender etc.) to conduct further analysis, and eventually craft better strategies for specific segments

Opening hours/ availability (applicable for manned stores only)

GUIDELINES (2/2)

Additional guidelines for customer satisfaction surveys (2/4)

NOTE: Collecting feedback is just the first step, it is crucial to put in place a system to document, analyze and act on feedback received

Best practices to encourage survey participation and completion

• Question types: Minimize the use of open-ended questions

• Rating scales: Opt for a 1 to 5 scale; a 1 to 10 scale might be too overwhelming

• Optimize for mobile: Customers are likely to complete the survey on mobile

• Add an option for anonymous submissions: Anonymous submissions can encourage more candid feedback and willingness to participate, however not collecting contact details might be a missed opportunity for follow-on customer engagement

• Consider incentivizing customers to encourage participation (especially for lengthier surveys). Some options to thank customers for their time include:

1. Discount coupons for their next purchase

Discount coupons also creates opportunities for a return purchase

2. Free gifts / samples

Free gifts/samples are generally very well received due to the immediate benefit the customer gets, if a customer liked a sample, they may return to purchase

In general, coupons and gifts may also be used incentivize the collection of contact details (e.g., email, contact number) for future communications

OPTION 1: “LITE” CUSTOMER SURVEY

Design a short 2-question customer survey that is simple yet insightful for benchmarking and enables quick identification of potential areas of improvement

Q1. On a scale of 1 to 5, how satisfied are you with the store?/ On a scale of 1 to 5, how likely are you to recommend the store to your friend, colleague or another hotel guest?

Q2. Which of these areas do you think the store can improve on? (Select all that apply)

• Product selection

• Product pricing

• Customer service

• Store appeal (visuals)

• Store appeal (cleanliness)

• Store opening hours

NOTE: It is important to define the rating scale so that customers are aware of clear on what 1 to 5 represents. Here is an example:

GUIDELINES (3/3)

REFERENCE SURVEY (1/3)

Additional guidelines for customer satisfaction surveys (3/4)

REFERENCE SURVEY (2/3)

OPTION 2: CUSTOMER SURVEY (EXTENDED VERSION)

Below is a reference list of questions that can be included in a longer survey.

AREA FOR FEEDBACK QUESTION

ANSWER TYPE

Product selection On a scale of 1 to 5, how satisfied are you with the product selection in the store? Rating

Product selection Are there specific products you would like to see in <the store>? Open ended

Customer service On a scale of 1 to 5, how satisfied are you with the friendliness and helpfulness of our team members? Rating

Store appeal

Pricing

Store opening hours

On a scale of 1 to 5, how satisfied are you with the overall ambiance and atmosphere of our store? Rating

On a scale of 1 to 5, how satisfied are you with the overall cleanliness of our store? Rating

On a scale of 1 to 5, how satisfied are you with the pricing/ promotions of products in the store? Rating

On a scale of 1 to 5, how satisfied are you with our store opening hours <insert current hours here>? Rating

REFERENCE SURVEY (3/3)

OPTION 1: “LITE” CUSTOMER SURVEY

Design a short 2-question customer survey that is simple yet insightful for benchmarking and enables quick identification of potential areas of improvement

Store opening hours

When are you likely to visit our store?

□ Morning (7-11am) □ Midday (11am-2pm)

□ Afternoon (2-5pm) □ Evening (5-9pm)

□ Night (9-11pm)

Select all that apply

Overall experience On a scale of 1 to 5, how would you rate your overall experience at our store? Rating

Overall experience Do you have any suggestions for how we can enhance your shopping experience? Open ended

OPTIONAL TO INCLUDE AT THE END OF THE SURVEY FOR DATA COLLECTION

Contact Name/ email address/ contact number Open ended

Additional guidelines for customer satisfaction surveys (4/4)

REFERENCE SURVEY (2/3)

COMPARISON OF SURVEY PLATFORMS IN THE MARKET

There are many survey platforms available on the market. Below is a comparison of some of the popular platforms used for customer feedback collection

Other channels

This section contains guidance on expanding channels beyond shop floor to in-room delivery and click and collect

SECTION CONTENTS

a. IN-ROOM DELIVERY AND CLICK AND COLLECT

In-room delivery and click and collect (1/3)

FREQUENCY

As needed

OBJECTIVES & BENEFITS

• Increase store sales

• Enhance guest experience by providing additional convenience to them

NOTE: : Ensure there is a supporting business case including sufficient evidence customer demand for either outside of store experience before committing investment in terms of money and time to develop the service.

Opportunities to deliver store experience beyond physical spaces

In-room delivery from store refers to a service where team members deliver items purchased from the store directly to the guest's room.

The addition of this service is recommended for properties which also offer room-service as the store can “piggyback” on existing room service capabilities and resources.

Customers can enjoy the convenience of having the store’s products brought to their doorstep.

Click and collect, also known as "buy online, pick up in-store"

(BOPIS) is a retail service that allows customers to place orders online (often paying online) and subsequently picking up items ordered from a physical location. This service blends the convenience of online shopping with the immediacy of pick-up from the store.

Customers can shop online at their convenience and pick up the items at a time that suits their schedule, avoiding queues.

NOTE: Click and collect may not be suitable for some properties where it might not be commensurate with the hotel’s brand positioning.

In-room delivery and click and collect (2/3)

03 04

TECHNOLOGY

Decide on the ordering platform for customers to place orders

• Room service menu in room directory; ordering done by calling front desk (traditional room service)

• QR code menu with digital order submission and payment

• Other software

OFFERINGS AND LISTING

Attention needs to be paid to updating of the menu to ensure it reflects the current available selection.

STAFFING

Existing team members would need to be trained on additional duties to provide these services:

• In-room delivery: perform delivery to rooms

• Click and collect: to pick and prepare items for collection

VISIBILITY

Increase visibility of services to guests through…

• In room directory (as part of the Room Service catalog)

• Having a separate page for “Selection by <name of store>” can also help draw an association with the store

• In room signage

• In-store comms

NOTE: Additional pricing considerations:

• A minimum order value for in-room delivery or click and collect orders can help prevent unprofitable transactions

• Some properties might choose to price items offered for in-room delivery higher than in store, so it is commensurate with the rest of the room-service

In-room delivery and click and collect (3/3)

Other considerations for in Click and Collect in store

• Create a pick-up point

• Suggested pick-up areas:

• Unmanned: Front desk

• Manned: Cash desk

• Ensure there is sufficient storage for orders ready for collection

• Consider addition of signage if pick-up area is separate from front desk or cash desk

• Train team members on new processes

• How to receive orders

• How to indicate to consumers when items are ready for collection or if there is a delay

• How to indicate out-of-stock products

• How to troubleshoot common issues linked to order processing etc.

• Receive and verify customer orders and check product availability

• Inform customer immediately if product is unavailable

PROCEDURES

• Align internally if team members pack items from the shopfloor or if they do so from the storeroom

• For food and drinks orders, presentation should reflect the service levels expected of room service (ask customers if they prefer item in on-the-go packaging or plated)

• Check the items and room is accurate before handing over the order to the customers

• Handle order with levels of service expected of a room service order

• Receive and verify customer orders and check product availability

• Inform customer immediately if product is unavailable

PROCEDURES

• Align internally if team members pack items from the shopfloor or if they do so from the storeroom

• Verify order confirmation details

• Check the items are accurate before handing over the order to the customers

Category Strategy

This section contains guidance on planning and reviewing categories, selecting products that fall within the category, as well as planning for seasonal offerings

SECTION CONTENTS

a. CATEGORY STRATEGY AND PRODUCT SELECTION

b. SEASONAL PLANNING

c. LISTING NEW PRODUCTS

Note: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations only serve as general guidelines for reference.

HGI Shenzhen Nanshan Ave, China

Category strategy and product selection (1/14)

FREQUENCY

OBJECTIVES & BENEFITS

Better alignment of retail offerings with hotel strategy, guest needs and financial objectives such as profitability

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

(1/11)

Recommended types of categories – consider having a good mix of these

Core items that meet the basic needs of many travelers e.g., drinks, snacks, toiletries etc.

Items unique to the country/region and evoke a sense-of-place of travel destination

It is recommended to focus on meaningful “lifestyle” products or local F&B products and avoid overtly touristy souvenirs etc.

Items to meet the needs of a core demographic of the hotel e.g., children’s books and toys, surfing/ snorkeling gear etc.

Items with hotel brand branding and aligned with their core strengths, property branding and values. Can be food or non-food

(e.g., Water tumblers in Hilton Tokyo Bay, room scents in Waldorf Astoria, banana cake in Hilton Tokyo, Mooncakes in Hilton Kuala Lumpur)

Items reflecting seasonal events or local festivals. These often generate excitement due to its limited-edition nature and creation of a festive atmosphere

Category strategy and product selection (2/14)

FREQUENCY

Annual review

OBJECTIVES & BENEFITS

Better alignment of retail offerings with hotel strategy, guest needs and financial objectives such as profitability

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

Considerations to improve revenues and profitability through category strategy

HIGH MARGIN CATEGORIES

• Where possible, include higher margin categories such as prepared drinks (e.g., brewed coffee/tea) etc.

• Seasonal items can be very profitable e.g., Christmas Cookies, Mooncakes etc.

COMPLEMENTARY CATEGORIES

• Some items sell well together and should be stocked together (e.g., espresso-based drinks or brewed tea with cakes, ice cold beer with chips etc.)

• Consider bundle promotions (e.g., Mooncakes and special tea blend as a set) (refer to 2.3b. Discounts and promotions)

Category strategy and product selection (3/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

GUIDELINES (3/11)

Segment-based considerations

SEGMENTING BY PROPERTY LOCATION

Resort

• A wider range of categories and products might be stocked in resort locations where retail is less accessible

• These also tend to be more iconic locations – likely more demand for property-branded item

City

• Consider differentiation from competition while keeping core essentials that are always in high demand for guests who value convenience

• Key competitors include convenience stores and food delivery etc.

SEGMENTING BY NATIONALITY

Understanding preferences based on guest nationality

Case study: Korean snacks are best sellers in HGI Danang which has many Korean guests

Case study: Starbucks and Lays are best sellers in HGI Serangoon which has many American guests

NOTE: Guests might have cultural differences in their willingness to pay for convenience as well and how much they value certain categories as well E.g., Japanese guests may be less willing to spend money on canned drinks when there are convenience stores/ vending

SEGMENTING BY CORE CUSTOMER

SEGMENTS

Understanding needs of relevant customer segments and tailoring offerings accordingly Refer to next page for segment needs analysis and example categories

Category strategy and product selection (4/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

GUIDELINES (4/11)

Reference categories/ products for consideration by customer segment

CUSTOMER SEGMENT

BUSINESS TRAVELERS

KEY NEEDS OF SEGMENT

I want to stay connected…

I need my notes, name cards and documents…

I want to delight my clients with a winsome gift…

I’m too busy to sit down for a full meal…

POTENTIAL CATEGORIES/PRODUCTS TO CONSIDER

I want to relax and wind down after a long day… Portable chargers Travel adapters Phone charging cables Notebook Pens Business card holders

Category strategy and product selection (5/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

GUIDELINES (5/11)

Reference categories/ products for consideration by customer segment

CUSTOMER SEGMENT

LEISURE TRAVELERS

I want to stay connected… KEY NEEDS OF SEGMENT

I have late night cravings/ want to enjoy some snacks…

I can’t wait to explore the city/ facilities/ nature…

I want something to remember this trip/location by and I want to bring souvenirs for my friends…

I’ve bought too many items…

NOTE: 1. Not made available as guest amenities, examples includes sunscreen and mosquito

Include some products with a price point that is not too expensive that guests can bring home as souvenirs

Category strategy and product selection (6/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

GUIDELINES (6/11)

Reference categories/ products for consideration by customer segment

LUXURY TRAVELERS

More relevant for brands Waldorf Astoria, Conrad and LXR

I want to pamper myself…

I want to bring a piece of the hotel’s magical elegance home…

I want something well made, beautiful and that fits my lifestyle…

I want to share my experience with friends and family…

to help guests mail their postcards if the hotel shop sells postcards

Category strategy and product selection (7/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference. I

categories/ products for consideration by customer segment

Case study: Conrad may be known for its iconic Conrad Bear which has since taken on different incarnations that reflects a sense of place e.g., monkey (Bali), elephant (Thailand)

Category strategy and product selection (8/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

GUIDELINES (8/11)

Reference categories/ products for consideration by customer segment

NEEDS OF SEGMENT

CULTURE ENTHUSIASTS

I want to bring a piece of the local culture home with me or for someone as a gift… KEY

I want to learn more about the local culture…

SUSTAINABILITY WARRIORS

I want to know my purchase is making a difference to the community…

I want products that align with my values and that minimize environmental impact…

Books on local history/culture

Products made by Social Enterprises

Reusable tumblers

Local food/ drinks Local spices/ sauces

Local handicrafts1

Products for fund raising

Reusable shopping bags

Products made from sustainable materials

but especially

Canopy, Tempo, Motto, Curio Collection and Tapestry Collection

Category strategy and product selection (9/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

GUIDELINES (9/11)

• Property-branded items tend to be a great idea for iconic and luxury properties

• Not only are they meaningful souvenirs capturing fond memories of an unforgettable vacation, but they can also be great gifts for friends back home and even act as a status symbol

Bonus: they often act as advertisement/ branding for the property

ADDITIONAL GUIDELINES ON PROPERTY-BRANDED MERCHANDISE

• Products are desirable, reflecting the quality of the Hilton brands

• Ensure products are high quality, well-made, durable and comfortable/ easy to use

• A potential way to ensure quality is to partner with known and respected brands/ suppliers

• Think carefully about materials, prioritizing premium and natural materials

• e.g., metal tumblers instead of plastic which can feel cheap especially if not BPA free

• Products are thoughtfully curated; focus on a few iconic offerings rather than overwhelm consumers with choice

• Reflect brand identity and lifestyle of target segments

• Should not simply look like corporate gifts but a good addition to their lifestyles

CASE STUDY: DoubleTree cookies are a global brand standard, some hotels sell seasonal cookie jars and cookie-related merchandise

• Items currently supplied to the hotel that are popular with guests can be good choices for merchandise e.g., High quality tea ware, branded slippers or tote bags provided to resort guests)

• Be sure to test consumer reception to your products

• Products use Hilton brand logos appropriately, striking a balance between aesthetics and brand visibility

• Ensure logo is visible but tastefully applied, avoiding areas logo(s) may be distorted and obstructed by folds, seams or pockets

• Ensure logo is true to scale, true to color and that the print is fine enough to fully reflect logo details without any distortion

• Ensure use of the logo complies fully with any trademark and copyright regulations

Timeless Reed Diffuser, Waldorf Astoria

Conrad Bear, Conrad Singapore

Cookie Merchandises, DoubleTree Phuket Banthai Resort

Category strategy and product selection (10/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

GUIDELINES (10/11)

ADDITIONAL GUIDELINES ON CO-BRANDED PRODUCTS

Some hotels have adopted a co-branded product strategy, this required both strategic planning and collaboration as well as an awareness of key advantages as well as drawbacks and risks

IMPORTANT CONSIDERATIONS

• Co-branding works best for brands that are aligned in terms of values, target audience, market positioning

• Clarity is crucial in terms of legal and contractual agreements especially in the areas of revenue sharing, intellectual property rights and product distribution including how both brand’s logos and names will be used on the product and in marketing

• Other areas to plan and align on include product development, marketing and promotions, logistics and distribution

KEY ADVANTAGES

• Leverage equity of both brands

• Enhance credibility by leveraging trust associated with partner brand

• Provide access to new markets

• Share costs and resources in marketing

DRAWBACKS AND RISKS

• Potential confusion if there is a mismatch in branding and target market

• Unequal contribution/ imbalance in the partnership in terms of contribution or revenue sharing

• Complex decision making due to needing to align on product, marketing etc.

Category strategy and product selection (11/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

GUIDELINES (11/11)

CASE STUDY: Co-branded products – hospitality competitor set examples

Leveraging on the appeal of an iconic property to develop meaningful lifestyle products across categories (e.g., games, daily essentials)

Strengthening Club Med’s association with sports (esp. golf and tennis) by collaborating with an iconic sports brand

edition

Bay

Refer to the next page for case studies of co-branded products

Category strategy and product selection (12/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

PROCESS (1/3)

KEY STEPS IN A CATEGORY STRATEGY REVIEW (1/3)

Understand your market

Define/update overarching strategic positioning in alignment with hotel and property branding

DETAILED PROCESS STEPS (1/3)

Step 1: Understand your market

Evaluate current portfolio and perform “hindsight analysis”

Decide if new categories should be added/removed

Define/ update category role, intent and strategy

• Analyze needs and preferences of target customer segments, competitive landscape and activities, supplier landscape, and potential growth opportunities

NOTE: If guests repeatedly ask team members for a certain product, it may be an indicator of demand/ need

Review products within category and adjust product selection accordingly

Step 2: Define/update overarching strategic positioning in alignment with hotel and property branding

• Ensure all products/ categories offered support the “story” and image the property wants to tell as retail is always part of the broader hotel strategy

• E.g., upmarket, eco-friendly, locally sourced, family friendly and welcoming, trendy and young etc.

• Often this includes playing to the hotel’s strengths and what it is known for

• E.g., reputation for great sweets/pastries, known as iconic beach holiday destination etc.

Category strategy and product selection (12/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

PROCESS (1/3)

(2/3)

Understand your market

DETAILED PROCESS STEPS (2/3)

Define/update overarching strategic positioning in alignment with hotel and property branding

Evaluate current portfolio and perform “hindsight analysis”

Decide if new categories should be added/removed

Define/ update category role, intent and strategy

Step 3: Evaluate current portfolio and perform “hindsight analysis”

• Category performance vs targets (financial/ non-financial)

• Analysis of impact of competition and/or cannibalization (if any)

• Competition: occurs when changes in competitor’s offerings reduce sales of products as customers switch (e.g., opening of a new café near the hotel may reduce sales of coffee in the hotel’s Grab and Go store

• Cannibalization: occurs when a new product reduces the sales of an existing product. Cannibalization poses a problem if overall revenue and profitability is decreased upon the introduction of a new item, if the new product is more profitable, it may not be an issue

Note: Cannibalization can also occur across two different stores (e.g., offering a grab and go option might cannibalize the sales of the hotel breakfast buffet)

• Customer and team members' feedback

Note: Ensure on-the-ground team members have access to feedback channels

Step 4: Decide if new categories should be added/removed

• Align with key stakeholders on whether a new category should be added or removed, keeping in mind overall category and product portfolio as well as strategic objectives and targets

Review products within category and adjust product selection accordingly

Category strategy and product selection (12/14)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

(1/3)

Understand your market

Define/update overarching strategic positioning in alignment with hotel and property branding

DETAILED PROCESS STEPS (3/3)

Step 5: Define/ update category role, intent and strategy (1/2)

Evaluate current portfolio and perform “hindsight analysis”

• Category proposition(s): How the category meets the needs of the customer segment it serves

• Category role and priority: role of the category in the store and associated priority for space allocation, assortment etc.

• Core products: main revenue generators, main reason why customers visit the store – high priority

• Complementary products: often sold alongside core products - medium priority

• Supplementary products: other products that are “nice to have” in the store but not major revenue drivers – low priority

• Category drivers: understanding key drivers behind consumer purchases in the category e.g., brand, price, availability of popular flavors etc.

• Key bets: ideas/hypotheses to test in the store that are likely to resonate with target shoppers e.g., more variants of potato chips will increase sales

Decide if new categories should be added/removed

Define/ update category role, intent and strategy

Review products within category and adjust product selection accordingly

Step 5: Define/ update category role, intent and strategy (2/2)

• Key metrics/ targets (financial, non-financial)

• Position in store/ store space allocated

• Strategic implications on:

• Assortment breadth/depth e.g., new brands

• Promotions e.g., bundling promotions etc. (refer to 2.3b. Discounts and promotions)

Step 6: Review products within category and adjust product selection accordingly (refer to 2.2a. Assortment optimization)

• Expected financial performance (total profitability)

• Customer’s needs (key unmet needs and desires)

• Strategic importance (product alignment with brand image and commitment to values, or whether it plays a strategic role in the store e.g., low margin/loss leader)

PROCESS

Seasonal planning (1/3)

FREQUENCY

Annual seasonal offerings plan with detailed execution planning 3-4 months before each season

OBJECTIVES & BENEFITS

• Support planning required for seasonal campaigns or promotions

• Provide exciting and profitable seasonal offerings to customers

PROCESS (1/3)

Seasonal campaigns involve the creation of offerings for specific seasons with supporting activities such as procurement and inventory management, store displays, marketing and promotional strategies

SEASONAL PLANNING PROCESS

Create a seasonal calendar that outlines seasons, holidays or events as part of annual retail plan, including local festivals

• Targeted at specific segments (specific to location and property)

• Optional: aligned with any seasonal campaigns/ celebrations for the property

SOME SEASONAL OPPORTUNITIES, ESPECIALLY FOR FOOD RELATED PRODUCTS/GIFTS

Seasonal planning (2/3)

PROCESS (2/3)

BASED ON THE SEASONAL CALENDAR PLAN…

REFLECT – what has been successful in the past periods and what could be better? Consider inputs from previous years post-campaign evaluation

DEFINE CAMPAIGN PERIOD (start and end dates) and main themes/ concepts for the campaign

• These themes may be aligned with a broader seasonal theme throughout the property

DEVELOP SEASONAL OFFERINGS aligned with theme, brand and customer preferences

• Conduct market research to understand consumer behaviors, preferences, trends and competitive landscape

• Generate ideas and select key concepts/ product ideas

• Develop products and test with focus group or small segment of target market (sampling), including packaging presentation and concepts to appeal to consumers

DEVELOP PRE-CAMPAIGN P&L; FORECAST SALES BEFORE SOURCING AND PLANNING INVENTORY LEVELS ACCORDINGLY

• Develop pre-campaign projections of quantities sold and associated revenues and cost to estimate projected profits

• Work closely with suppliers and logistics partners to ensure timely delivery of seasonal inventory; especially important when dealing with perishable/ time-sensitive products, and not to miss any of the promotion period due to delayed deliveries

PRICE PRODUCTS, considering pricing strategies that may take advantage of seasonal demand (refer to 2.3a. Price setting)

• Pay special attention to in-store signage, displays and tasteful decorations to attract attention of shoppers and create a festive atmosphere

PLAN STAFFING RESOURCES – Ensure shops are not understaffed. If needed, adjust staffing levels to accommodate higher demand

• Ensure that team members are trained to provide information on and answer questions about seasonal product offerings

Seasonal planning (2/3)

PROCESS (2/3)

BASED ON THE SEASONAL CALENDAR PLAN…

MONITOR SALES and record customer response and feedback, not forgetting to check the internet and social media for reviews etc.

ADAPT – If needed, consider clearance sales or promotions towards the end of the season to clear remaining inventory

CONDUCT POST-CAMPAIGN EVALUATION to refine approach for next campaign, asking key questions and reviewing areas such as

• What went well, challenges faced, what could be improved

• Sales figures versus targets set

• Customer feedback

Listing new products

FREQUENCY

As needed

OBJECTIVES & BENEFITS

• Update system records, capture new entry of SKU for new product(s) being sold in the store

PROCESS (1/3)

New products should be listed as soon as possible after confirming with respective suppliers that the new products will be delivered. This is to facilitate a smoother good receiving process of the physical product in store

KEY ACTIONS FOR LISTING A NEW PRODUCT

1. Key in product details into relevant systems (e.g., POS, inventory system, finance system etc.). These can include:

• Product name

• Category

• Brand and manufacturer information

• Supplier

• Product description/ variations (e.g., size, flavor etc.)

• Product price

• Any other relevant fields as designed (dependent on property level SOPs)

2. Generate and assign SKU ID (refer to 1.2ai. Create a SKU)

• Assign “NP” for permanent SKUs or “SL” for seasonal/ limited edition products according to the sales status (refer to 1.2aii. Sales status categorization)

3. Indicate quantity

4. Allocate shelf space to new product (refer to 2.4a. Visual merchandising and planograms)

5. Prepare required shelf labels and signage (refer to 2.4b. Point of Sales Materials)

6. Allocate storeroom space to new product (refer to 1.2bi. Storeroom setup and management)

7. Ensure team members are trained to provide information on and answer questions about the new product

8. Receive goods from supplier and stock shelves

Assortment Rationalization

This section contains guidance on how to review historical sales, rationalize assortment and take post rationalization actions including delisting underperforming products

SECTION CONTENTS

a. ASSORTMENT OPTIMIZATION

b. DELISTING PROCESS

HGI Kyoto Shijo Karasuma, Japan

Assortment optimization (1/2)

FREQUENCY

Quarterly review for Grab & Go, Annual review for Hotel shops & self-service formats

OBJECTIVES & BENEFITS

Optimize product assortment and shelf space allocation for each SKU to improve profitability and ensure strategic alignment with guest needs and property branding

GUIDELINES

WHAT IS ASSORTMENT/SKU RATIONALIZATION?

It is a process of evaluating SKUs based on a 3 key dimensions; economic performance, customer needs and strategic importance and taking follow on action to optimize product assortment accordingly.

WHAT ARE SOME OF KEY DIMENSIONS TO ASSESS?

ECONOMIC PERFORMANCE

- Total profit by SKU

- Overall categorization of SKU (A, B or C) based on revenue share (refer to 1.2aii. Sales status categorization)

EXAMPLE ANALYSIS OF PRODUCTS STOCKED AT A BEACH RESORT

For a beach resort, canned beer outperforms sunscreens in both profit and revenue share (e.g., it is ranked #5 in Profitability and is Category A in revenues)

CUSTOMER NEEDS

- Provide value to customers by meeting their key needs

STRATEGIC IMPORTANCE

- Convey brand image, evoke sense of place

- Demonstrate commitment to values e.g., ESG, supporting local businesses etc.

- Act as loss leader to draw customers into shop

Sunscreens are a core product for beach resorts that meets a key guest need (sun protection) and should be kept in stock, despite not being a high revenue generating product

High quality local handicrafts made from sustainable coconut shells aligned with sense of place and hotel’s ESG commitments

Assortment optimization (2/2)

FREQUENCY

• Quarterly review for Grab & Go

• Annual review for hotel shops & self-service formats

ECONOMIC PERFORMANCE

OBJECTIVES & BENEFITS

Optimize product assortment and shelf space allocation for each SKU to improve profitability and ensure strategic alignment with guest needs and property branding

Arrange SKUs in terms of total profitability in descending order. An underperforming SKU is either:

1. Bottom 10-15% of the profitability ranking

2. Negative profitability (may occur due to expiry or obsolesces)

3. In the “C” category of products sales (refer to 1.2aii. Sales status categorization)

PERFORMING SKUS

CUSTOMER NEEDS

STRATEGIC IMPORTANCE

4. Products that may be receiving negative customer feedback/ experience Keep the SKU

UNDERPERFORMING SKUS

Strategic Sourcing

Assess the vulnerability of supplier; consider back up suppliers for champion SKUs

Increase variation

Consider adding more variants of the best sellers

Do nothing

Continue to monitor economic performance

Due to strategic consideration / an existing customer need, but can consider price markdown

Replace SKU

Test with a similar product (e.g., change brand) to determine if there is an underlying customer need

Delist SKU

Removal from assortment mix (refer to 2.2b.

Delisting process)

Update store product assortment if needed, reallocate store space if required

Delisting process

FREQUENCY

As needed

OBJECTIVES & BENEFITS

Delist a product smoothly without any operational issues

GUIDELINES

Delisting an SKU is one of the follow-up action as part of assortment rationalization process; the specific SKU will no longer be sold in the store after existing inventory has been sold/ disposed off/ returned

KEY ACTIONS FOR DELISTING A SKU

(refer to existing guidance from Finance team on policies/procedures needed to delist items)

• Communicate with all stakeholders on the delisted SKU(s)

• Suppliers

• Relevant team members

• Finance department

• Do not submit any new reorder requested to supplier(s) for the delisted SKU(s)

• Understand the current inventory position for the delisted SKU(s)

• Current inventory on hand

• Any inventory in transit

• Change the status of the product to “01: Delisted” in any inventory and/or finance systems

• Consider discounts/ promotions to encourage sales and reduce excess stock (refer to 2.3b. Discounts and promotions)

• Monitor the sell off of delisted products – these can be easily forgotten if not managed closely

If there is a significant amount of excess inventory that still cannot be sold, consider returning it to suppliers (if feasible) or implementing a disposal plan in compliance with ESG goals (e.g., donations etc.)

FOLLOW UP ACTIONS AFTER INVENTORY IS CLEARED

• Reallocate shelf space of delisted products

NOTE: Monitor customer feedback and customer inquires related to the delisted SKU (if any) – the SKU might represent an underlying consumer need and the relevance of the SKU might have to be reassessed

Product Pricing

This section contains guidance on how to set and adjust prices and run price discounts and/or promotions SECTION CONTENTS

a. PRICE SETTING

b. DISCOUNTS AND PROMOTIONS

HGI Serangoon, Singapore

Price setting (1/2)

OBJECTIVES & BENEFITS

• Provide clarity on pricing approaches

• Improve profitability and price competitiveness

GUIDELINES (1/3)

KEY PRINCIPLES FOR PRICING

• There should be clear roles given for pricing management, measurement of pricing impact and a defined approval process for pricing and price adjustments

• Prices should match the branding and image of the hotel

• It is strongly recommended that pricing considers these 4 areas

REDUCING PRODUCT COSTS AND MARGINS

• If high cost is significantly impacting the store’s ability to price competitively, focus effort on reducing cost through improved procurement such as

• Sourcing from other suppliers or sourcing alternative products

• Bulk purchasing or centralizing purchasing (collaboration with other stores/ properties in the area etc.)

• Looking into reduction of supply chain costs

• Alternative business models e.g., consignment

MONITORING COMPETITOR PRICING

• Step 1: Identify competitive set - these can include nearby convenience stores, pharmacies and cafes etc.

• Step 2: Monitor competitor pricing regularly – monitor and record competitor pricing especially for key products, this can be done through store visits or online (e.g., retail sites, food delivery apps)

Price setting (2/2)

Use signals of price sensitivity to improve your pricing

• Data from historical pricing and sales as well as price tests (such as A/B testing) can help provide insight into price sensitivity and guide pricing decisions

• “Human experience” such as team members’ understanding of consumer’s price sensitivity and willingness to pay can be very helpful

PRICING PSYCHOLOGY

• Odd vs even pricing can convey different psychological meanings

• Odd Pricing: (e.g., $2.95) can suggest pricing is more calculated and hence less inflated; $2.95 also might also feels much less than $3 despite only being 5 cents less

• Even Pricing: (e.g., $3) can convey simplicity and transparency in pricing

• Words like “Only” e.g., “Only $3” can help increase perceived value

• Words conveying scarcity such as “limited time”, “seasonal special” and “limited stock available” can help encourage action

• Words conveying product origin, uniqueness in-store can be helpful in justifying

Pay close attention to pricing of iconic SKUs which people can use as “anchors” to judge reasonableness of overall price levels in a store (e.g., price of a latte or a can of Coke etc.)

PRICE ADJUSTMENTS

• Price adjustments should be considered in the following conditions:

• Significant changes in cost (e.g., unit product cost, material, labor or overheads)

• Significant changes in competitor pricing especially for core products

PRICE LIST

The final step after confirming prices is to prepare the pricelist/ menu. Ensure that the price lists are updated following price adjustments, wherever they are placed:

• In-store price list

• Any online price lists (if applicable)

Price lists may also be placed within the room for guests’ reference

Source: Club Med, Lacoste, Marina Bay Sands

GUIDELINES (2/3)

GUIDELINES (3/3)

Discounts and promotions (1/3)

GUIDELINES

(1/4)

& BENEFITS

• Provide clarity on pricing approaches

• Improve profitability and price competitiveness

While discounting is commonly used, it should be approached strategically to maximize benefits and minimize drawbacks

GENERAL PRINCIPLES TO DETERMINE DISCOUNTED PRICES

Note: Discounts should align with the overall branding strategy of the property/ store

• Monitor profitability, taking into consideration reduced revenue per unit sold

• Avoid negative margins (exceptions may be made for perishable food items at the outlet manager’s discretion)

• Estimate impact (uplift and cannibalization) and measure against estimates to improve future promotion campaigns

• There should be clear roles given for promotional planning, management and measurement and a defined approval process

• Avoid running too many promotional campaigns at one time – this can confuse the customer

• Comply fully to laws and regulations when applying discounts GENERAL APPROACH TO DEVELOPING DISCOUNT/ PROMOTIONAL CAMPAIGNS 01 02 03 04

Clearly define discounting/ promotional objectives

• e.g., grow sales, clear inventory, attract new customers, increase crossselling/upselling etc.

Identify segments and understand their price sensitivity and what discount strategies might appeal to them to meet desired objective

Ensure discounts are well communicated through:

• Point of Sales Materials (POSM)

• Team members

• “Promotion” section within QR code menus

Record and analyze impact of discounts on revenues, sales volumes, and overall profitability

Optimize results through experimenting with A/B testing with different discount levels, formats and timing etc.

Discounts and promotions (2/3)

NOTE: Each brand might have brand specific requirements which should be referred to. The category strategy and product selection recommendations below only serve as general guidelines for reference.

GUIDELINES (2/4)

IMPORTANCE OF TERMS AND CONDITIONS FOR DISCOUNTS AND PROMOTIONS

• Clear terms and conditions laid out for each discounting initiative that specify when discounts apply, how they are calculated, and any restrictions or exclusions

• For certain promotional campaigns, it may be important to include terms to prevent discount abuse, e.g., no discount stacking, promotion can only be redeemed once per customer etc.

NOTE: Discount stacking can adversely impact profitability (e.g., stacking Hilton Honors member discount on top of product discounts)

TYPES OF DISCOUNT STRATEGIES TO CONSIDER (1/2)

DISCOUNT TYPE DESCRIPTION

General promotions Short term price reductions to promote product

Clearance sales Price reduction to clear stocks

Limited-time offers Discounts used to create a sense of urgency (e.g., sales till 4th Dec)

Volume discounts Encourage purchases of larger quantities (e.g., buy 2 get 1 free)

Tiered discounts Discounts that increase with a minimum purchase amount (e.g., enjoy 30% off when you spend a minimum of $50)

Bundling discounts Discounts given to a bundle, aimed to increase average basket value (e.g., canned drink and instant noodles at a bundle price)

Discounts targeted at specific segments Cheaper prices for hotel guests, hotel employees or workers in a nearby office building (e.g., 10% off for all hotel guests)

TYPE DESCRIPTION

Loyalty stamp cards Discounts for repeated purchases (e.g., coffee stamp cards – collect 10 stamps to enjoy 1 free drink)

Hilton Honors loyalty program Exclusive discounts for Hilton Honors members

• Note: Discounts would affect retail P&L and may need to be factored in pricing commercials

NOTE: Team members must be trained to process promotion at the point of sales (POS). For unmanned, this might include team members at the front desk etc. and may impact choice of promotion(s) complexity

Clearance sales — discounting products close to its expiry date (1/2)

• Practice First Expiry, First Out (FEFO) – ensure inventory is presented using FEFO and regularly monitor and remove items close to expiry/expired items

• Understand local regulations essential that any discount of food products close to expiry is done responsibly and in compliance with local food safety regulations

• Assess quality ensure product is still safe to consume/use with no signs of spoilage

• Monitor and adjust discounts (if needed) to reflect the length of the remaining shelf life

• Clearly label products and promote responsibly: ensure customers are informed of the reduced shelf life (as well as any specific storage/handling instructions). It is recommended that customers are aware that the product is discounted due to its proximity to expiry

GUIDELINES (3/4)

DISCOUNT

Discounts and promotions (3/3)

FREQUENCY As needed

OBJECTIVES & BENEFITS

• Provide clarity on pricing approaches

• Improve profitability and price competitiveness

GUIDELINES

(4/4)

Clearance sales — discounting products close to its expiry date (2/2)

• Train team members (both manned and unmanned) – to fully understand the discounting policy, be aware of food safety practices, and inform customers and answer questions

Use elsewhere (e.g., buffet or guest amenities) or donate to organizations that accept food donations

Visual Merchandising

This section contains guidance on how to increase store attractiveness and display store merchandise to better capture customers’ attention

SECTION CONTENTS

a. VISUAL MERCHANDISING AND PLANOGRAMS

b. POINT OF SALES MATERIALS (POSM)

Visual merchandising and planograms (1/9)

FREQUENCY

Review once a year but update sections for seasonal promotions regularly

OBJECTIVES & BENEFITS

Create an inviting environment that is aligned with and enhances the atmosphere of the property and that also encourages product sales

Visual merchandising is the practice of enhancing the visual appeal of a retail space to attract customers, encourage sales, and create a unique and memorable shopping experience

• Target customer preferences and shopping behaviors

• Traffic flow outside of the store, and how shoppers are directed into the store

• Number of SKUs that need to be displayed

• Overall brand image and store strategy

• General objectives for the space e.g., create warm inviting environment etc.

NOTE: If low store traffic is an issue, consider tasteful signages increase store awareness

Consider how to create a “sense of place” through visual merchandising

• Understand the store layout and how customers navigate through/ within it

• Identify high-traffic areas and key focal points

• Consider how focal points and pathways can guide customers through the store so they encounter key displays and products

• Divide your store into different zones based on product categories or themes

• Designate areas for seasonal or promotional products

• Refer to product sales performance/ profitability

• Review and adjust accordingly with changing seasons or in response to

SPOTLIGHTS

Create a warm, bright atmosphere

Carefully designed to shine in certain angles

ISLAND DISPLAYS:

Freestanding display in the middle of the store drawing attention as key highlight of the shop

• Use small tables, gondola shelves, or tiered displays

• Leverage on a variety of storage/ display units e.g., step shelving, bins for interest

• Feature seasonal or promotional items

• Ensure there's enough aisle space for guests

Visual merchandising and planograms (2/9)

FREQUENCY

Review once a year but update sections for seasonal promotions regularly

OBJECTIVES & BENEFITS

Create an inviting environment that is aligned with and enhances the atmosphere of the property and that also encourages product sales

GUIDELINES

KEY VISUAL MERCHANDISING ELEMENTS TO CONSIDER (1/3)

LIGHTING

DISPLAYS AND FOCAL POINT(S) ADVANTAGES

• Understand and utilize different lighting types

• Ambient lighting: store’s main lighting source, acts as “base” to overlay other lighting

• Accent lighting: used to highlight specific products or key areas

• Decorative lighting: lights used to create visual interest on their own

• Task lighting: additional lighting for functional purposes e.g., brighter lights over the POS desk

• Consider brightness and tone (warmth)

• Store should be well lit and products clearly visible

• Warm/Soft White or Natural White/Daylight or can create a more inviting atmosphere (instead of Cool White)

• Create focal points at the store entrance and other high-traffic areas

• These areas should prominently feature seasonal, popular or high-margin products

• Use props and product displays that complement your merchandise and help customers visualize how products can be used or worn

NOTE: Ensure all decorative elements are elegant, tasteful and on-brand

+ Creates focal point in the store

+ Allows for 360-degree product display

+ Encourages customers to explore different sections

MODULAR RACKS FOR SHELVING

Dividers are also used to organize items

STORYCARDS:

Share the story behind each product e.g., historical significance, how it is locally made, how it is a better choice for the environment etc.

Visual merchandising and planograms (3/9)

FREQUENCY

Review once a year but update sections for seasonal promotions regularly

OBJECTIVES & BENEFITS

Create an inviting environment that is aligned with and enhances the atmosphere of the property and that also encourages product sales

GUIDELINES

KEY VISUAL MERCHANDISING ELEMENTS TO CONSIDER (2/3)

SHELVING

• Plan shelf layouts to optimize space, considering factors like shelf height, depth, and distance between shelves

• Ensure products are easily accessible to customers

• Invest in shelf organizers such as bowls, bins, dividers, and trays. These helps separate products and create neatness

• For smaller stores, consider how to maximize shelf space

• Make use of vertical space

• When appropriate, stack or nest products to save shelf space. Ensure that stacked items are stable and secure

• Use peg hooks and slatwalls to display products that can hang, such as accessories, clothing, or small items. These systems maximize space and make products easily accessible

SPACING BETWEEN PRODUCTS

Neat and tidy layout with no clutter

Effective use of decorative plants to break monotony

SPACING

Modular shelving, instead of fixed carpentry, can help increase versatility of a space allowing customization and reconfiguration easily to adapt to changing product assortments and display needs

NOTE: Usage of greenery can brighten up a retail space and bring a bit of nature indoors

• Adequate spacing between products prevents visual clutter which helps customers to view and access items with ease

• Tasteful decorative items can help add visual interest to spaces

ENGAGING SENSES AND CREATING A SENSE OF PLACE

Decorative plants and wallpapers creating a visual association with Singapore the Garden City

COLORS

Colorful product labels and price tags add to the warm and vibrant atmosphere

Visual merchandising and planograms (4/9)

FREQUENCY

Review once a year but update sections for seasonal promotions regularly

OBJECTIVES & BENEFITS

Create an inviting environment that is aligned with and enhances the atmosphere of the property and that also encourages product sales

GUIDELINES

KEY VISUAL MERCHANDISING ELEMENTS TO CONSIDER (2/3)

STORYTELLING

COLOR

• Consider how to help consumers visualize how the product fits into their lives

• Consider how each element in the store can help create an emotional connection through imagery and associations

• Use story cards to share more information on the products; this especially effective for unmanned stores

• Select and adhere to a color palette aligned with brand colors and overall look and feel of the property

• Consider how to leverage color psychology to evoke desired atmosphere and emotions in shoppers

• Balance neutral tones with accept colors for a harmonious look

ENGAGE OTHER SENSES

• Use scents, background music, and tactile elements (such as textured decorations) to create a multisensory experience

Visual merchandising and planograms (5/9)

GUIDELINES

PRODUCT PLACEMENT GUIDELINES

EYE LEVEL

Place popular/ fast moving or high-margin items at eye level to maximize visibility and ease of retrieving products

EYE LEVEL (FOR CHILDREN)

Lower shelves can be used for less popular items but may also act as strategic positioning for SKUs targeted at children (e.g., sweet treats, toys etc.)

SIMILARITY

Group similar categories and products from the same brand together to help customers find products

ADJACENCY

Consider how to visually display complementary products close together for cross-selling opportunities

FACING

All products must be front facing

Overlapping displays are not recommended

Slower moving products should not have more than 1 facing

IMPULSE PURCHASES

Display small, last-minute impulse buys near the POS desk

LOGISTICS AND SAFETY

Use lower shelves for heavier or bulkier products to protect the safety of both employees and guests

NOTE: Avoid overstocking shelves with slow-moving items, keep track of what sells and adjust space accordingly

Refer to the next page for an illustration of product placement guidelines

Visual merchandising and planograms (6/9)

GUIDELINES

SUGGESTED PRODUCT PLACEMENT ON A 4-TIER SHELF IN-STORE

Accent lighting • Use accept lighting to highlight key products

• Prevent visual clutter both horizontally & vertically Decorations to break monotony

• If space is available, select tasteful decorations aligned with the property’s overall décor and sense of place

• Use bowls, bins, dividers, and trays to separate products and maximize storage

positioning of items for children

• Besides slower moving SKUs, the eye level for kids is different – remember that they are an important segment

• Be careful not to overuse Leverage

built-in storage

• Some shelf designs have built-in storage, store fast moving SKUs in store and pictures of shelf displays (planograms) for easy reference

Visual merchandising and planograms (7/9)

GUIDELINES

OTHER VISUAL MERCHANDISING CONSIDERATIONS

• Team member support for visual merchandising

• Train team members to follow planograms/ pictures of product displays accurately and maintain displays

• Perform audits/ checks to validate compliance, ensuring that products are placed in their designated locations and that the shelves are clean and well-maintained

A most updated copy of the fixture’s planogram is kept in the store for easy reference but also online in the Information Repository (refer to 1.1bi. Information repository)

SPECIAL SECTION: GUIDELINES FOR INTEGRATION OF RETAIL INTO HOTEL COMMUNAL SPACES

Integrating retail into multifunctional communal spaces is a hospitality trend and will be a key feature of some Hilton brands. Below are some points to keep in mind when designing retail for such spaces:

• If products are displayed around the communal area, ensure products on sale are carefully labeled and priced

• Carefully select and curate products on sale so they do not look too out of place in a more communal space

• Ensure there is guidance on payment methods (e.g., prominent price labels, instructions on payment etc.)

• Ensure retail spaces are in the line of sight of team members – also consider adding CCTVs to deter theft

Visual merchandising and planograms (8/9)

A planogram is a tool used to plan retail store and shelf layouts. They are often also referred to as POG, shelf space plans, space plans, and retail schematics

BENEFITS OF DEVELOPING A PLANOGRAM

• Efficient space utilization – Planograms are a visual tool that helps product placement planning, illustrating clearly the product dimensions and intended spacing between products (if any)

• Consistency in operations – Planograms provide a clear reference guide for employees regarding product placement and shelve replenishment

• Data driven decision making – Planograms are able to take into consideration sales data, perform analytics and allow retails to make data driven decisions to improve shelf layouts if required

TOOLS (1/2)

TYPES OF TOOLS

Visual merchandising and planograms (9/9)

COMPARISON OF PLANOGRAM CREATION TOOLS IN THE MARKET

There are many tools available on the market, but there are limited free options. Below is a comparison of popular planogram software available on the market

METRICS

Pure planogram software? Yes

Free option available?

of rack/ shelves

No, but provide planogram design templates

Unique value proposition Best free option that is simple to use, plus a professional planogram interface Limited capabilities in free version, but scalable paid version available

Although one of the more expensive options, there are advanced capabilities such as 3D visualization and defining and creating own shelf/ fixture types

Smartdraw is more of a design software to create visual representations – an efficient solution if there are other design needs within organization

TOOLS (2/2)

Point of Sales Materials (POSM) (1/4)

Point of Sales Materials (POSM) (2/4)

FREQUENCY

Review once a year but update sections for seasonal promotions regularly

OBJECTIVES & BENEFITS

• Create compelling POSM that resonate with shoppers and positively influence purchasing decisions

GUIDELINES

POSM are marketing materials or tools in the store that can influence purchases and enhance the overall shopping experience

COMMON TYPES OF POSM TO CONSIDER (2/3) – refer to subsequent pages for full details on each POSM type

POSM TYPE WITH DESCRIPTION

01 02 03

Banners and Posters

Banners are oversized signs, typically digitally printed, displaying slogans or designs. Posters are smaller, versatile versions of banners

• Grabs attention with vibrant visuals

• Easily customizable for different promotions

• Can convey detailed information about products or offers

Shelf Talkers and Danglers

Shelf talkers are small signs placed on shelves or racks to highlight specific products while danglers are suspended signs or tags that dangle from store ceilings or shelves

CASE STUDY: In the absence of team members in an unmanned store, HGI Serangoon uses story cards shelf talkers to educate shoppers

Flexible Product Displays

Stands or racks designed to showcase products

• Highlights specific products or discounts

• Doesn't take up extra space

• Can be placed near the products they refer to

• Takes up floor space (or wall space if pasted on walls)

• Provides high visibility for products

• Allows for creative product arrangements

• Can be placed strategically throughout the store

• Limited to shelf space

• Takes up floor or counter space

• May obstruct customer flow if not placed thoughtfully

Point of Sales Materials (POSM) (3/4)

FREQUENCY

Review once a year but update sections for seasonal promotions regularly

GUIDELINES

OBJECTIVES & BENEFITS

• Create compelling POSM that resonate with shoppers and positively influence purchasing decisions

POSM are marketing materials or tools in the store that can influence purchases and enhance the overall shopping experience

subsequent pages for full details on each POSM type

Brochures/Flyers

Printed materials with product information, promotions, or coupons

Digital screen displays

Digital signages that can display multimedia content

• Provides in-depth information

• Customers can take them home for reference

• Often overlooked or discarded

• Requires periodic restocking and maintenance

Product samples and testers

Product samples are small portions or examples of a product that are given to consumers for free or at a discounted price

Testers are products made available in stores for customers to try a product before purchasing

• Dynamic and interactive content presentation, can include videos and sound if needed

• Allows real-time updates and changes

• High initial investment

• Requires regular maintenance and updates

• Vulnerable to technical issues

• Allows customers to experience products firsthand

• Encourages immediate purchases

• Can be expensive for some products

• Requires periodic restocking

• Hygiene concerns

Point of Sales Materials (POSM) (4/4)

FREQUENCY

Review once a year but update sections for seasonal promotions regularly

GUIDELINES

PRODUCT PLACEMENT GUIDELINES

OBJECTIVES & BENEFITS

• Create compelling POSM that resonate with shoppers and positively influence purchasing decisions

DEFINE OBJECTIVES AND TARGET AUDIENCE

• Clarify goals to be achieved with the POSM – is it to promote a specific product, run a limited time offer or build brand awareness?

• Understand customer’s preferences, desires, and pain points to create materials that would resonate with them

USE EYE-CATCHING BUT BRAND-ALIGNED DESIGN

• Utilize visually appealing designs featuring attention grabbing colors and captivating imagery that align with the overall hotel brand and image

• Reinforce brand recognition by incorporating logos, brand colors, and consistent fonts

BE CLEAR, CONCISE AND EFFICIENT

• Craft engaging headlines to help capture attention

• Keep messages simple and easily digestible

• Use bullet points, concise sentences, and headers to convey essential information effectively

HELP SHOPPERS CHOOSE

• Highlight unique selling points (USPs) if needed to help shoppers understand key features of a product and compare across products

• Call out best selling/ recommended items

USE QUALITY IMAGES AND MATERIALS

• Use high-enough resolution that are not grainy

• Invest in durable, high-quality materials for POS displays, ensuring resilience against wear and tear

• Inspect and replace worn or damaged POSM to maintain a polished and professional appearance in-store

USE (WHITE) SPACE AND ENSURE READABILITY

• Incorporate ample white space to increase content digestibility and visual appeal while preventing overcrowding

ENSURE ALIGNMENT WITH OVERALL MERCHANDISING STRATEGY

• Ensure POSM works with other merchandising elements to create a cohesive in-store experience and unified brand message

TEST AND GATHER FEEDBACK

• Test with team members and shoppers, seeking feedback to identify the most effective designs and messaging

Getting Started on 1.1 General Store Operations (1/2)

1.1 GENERAL STORE OPERATIONS

1. OVERALL

1a. Read through Toolkit materials on general store operations.

2. SOPS FOR STORE OPERATIONS PROCESSES

2a. Understand as-is SOPs (if any) and identify any gaps.

2b. Adapt and implement recommended Toolkit SOPs and ensure relevant team members are trained accordingly. 5-8 days

3. COMMUNICATION AND COLLABORATION TOOLS

3ai. Set up information repository and supporting chat groups.

3aii. Launch information repository and supporting chat groups, ensuring team members are informed.

3bi. Decide if there is a need for project management and team collaboration tools, aligning on use cases for these tools.

3c. (Optional) Download project management and team collaboration tools, ensuring users are familiar with how to use them.

Getting Started on 1.1 General Store Operations (2/2)

1.1

4. KPI TRACKING AND ANALYSIS

4a. Understand as-is KPIs for retail (if any) and identify any gaps.

4b. Adapt and implement recommended Toolkit KPIs, ensuring there are team members responsible for tracking KPIs and they are regularly reported. 5-8 days

5. SALES FORECASTING

5a. Decide if there is a need for sales forecasting and which priority SKUs it would work best on. 2-3 days

5b. (Optional) Adapt and implement the reference Sales Forecasting Template, ensuring users are familiar with how to use it. 7-14 days

Getting Started on 1.2 Store Inventory Management (1/2)

1.2 STORE INVENTORY MANAGEMENT

1. OVERALL

1a.

2a. Understand as-is SOPs (if any) for SKU creation and classification, identify any gaps.

2b. Adapt and implement Toolkit guidelines on SKU creation and/or sales status categorization, ensuring relevant team members are familiar with new guidelines for future SKUs.

3. INVENTORY MANAGEMENT (1/2)

3ai.

3bi. Decide if there is a need for more active inventory level management (might be more relevant if frequent stockouts or overstocking is an issue).

3bii. (Optional) Adapt and implement the Toolkit guidelines in inventory level management, ensuring relevant team members are familiar with the selected inventory level calculation approach. 5-8 days

Getting Started on 1.2 Store Inventory Management (2/2)

1.2 STORE INVENTORY MANAGEMENT

3c. (If no existing stocktaking process) Adapt and implement Toolkit guidelines in stocktaking, ensuring relevant team members are familiar with the new process.

(If there is an existing stocktaking process) Evaluate existing stocktaking processes (including negative stock management) and compare with guidelines outlined in Toolkit, adjust processes and tools used if needed and ensure relevant team members are familiar with the new process. 5-8 days

3d. (If no existing shrinkage adjustment and review process) Adapt and implement Toolkit guidelines in shrinkage adjustment and review, ensuring relevant team members are familiar with the new process.

(If there is an existing shrinkage adjustment and review process) Evaluate existing shrinkage adjustment and review processes and compare with guidelines outlined in Toolkit, adjust process and tools used if needed and ensure relevant team members are familiar with the new process. 5-8 days

4. Expiry Management

4a. Understand as-is guidelines (if any) for expiry management and prevention and identify any gaps. 1-2 days

2b. Adapt and implement Toolkit guidelines and tools on expiry management and prevention, ensuring relevant team members are familiar with new guidelines and tools. 4-7 days

3. Inventory management (2/2)

Getting Started on 1.3 Service Operations

1. OVERALL

1a. Read through Toolkit materials on service operations.

1b. Assign team member(s) to manage service operations training.

2. CUSTOMER SERVICE GUIDELINES

2a.

2b. Adapt and implement Toolkit guidelines on Service Operations, planning and executing training, referring to Section 1.3vii. Training Team Members on how to plan training and using Sections 1.3ai to 1.3avi for training content development.

AND

3ai. Understand as-is customer feedback and satisfaction measurement (if any) and identify key gaps.

3aii. Adapt and implement Toolkit guidelines on customer feedback and satisfaction measurement, ensuring relevant team members are familiar with new guidelines.

3. CUSTOMER FEEDBACK

SATISFACTION MEASUREMENT

Getting Started on 1.4 In-room delivery and click and collect

1.4 IN-ROOM DELIVERY AND CLICK AND COLLECT

1. OVERALL

1a. Read through Toolkit materials on In-room Delivery and Click and Collect. 1-2 days

1b. Assign team member(s) to manage In-room Delivery and Click and Collect. 1-3 days

2. IN-ROOM DELIVERY AND CLICK AND COLLECT

2a. Analyze and validate potential demand for In-room Delivery or Click and Collect Service (that there is customer demand and that it would be financially viable). 7-14 days

2b. After confirming demand, adapt and implement Toolkit guidelines on setting up In-room Delivery or Click and Collect service, ensuring relevant team members are familiar with additional tasks required. 14-28 days

Getting Started on 2.1 Category Strategy (1/2)

1. OVERALL

1a. Read through Toolkit materials on Category Strategy.

1b. Assign team member(s) to manage Category Strategy and align on needed budget.

2. CATEGORY STRATEGY AND PRODUCT SELECTION

2a. Compile list of existing categories and products, analyze as-is category strategy and identify any gaps.

2b. Adapt and implement Toolkit guidelines on category strategy and product selection, referring to guidance on segment-based considerations, branded products and strategies to increase margins through product selection. Develop plan to transition to updated category and product selection.

2c. (Optional) Evaluate if branded/ co-branded products would be appropriate for the property.

Consider if this should be a project at Brand level for area/APAC (especially for co-branded products) instead of being a merchandise limited to property.

Check with Brand Managers to understand availability of any existing reference guidelines before developing your own products with reference to Toolkit guidelines on product selection and quality levels.

days

NOTE: Depends on production time and negotiations with partners, may take longer

NOTE: Category strategy would have direct implications on 2.4 Visual Merchandising especially with regards to product placement in store, and adjustments may be needed on that front to accommodate updated category strategy.

Getting Started on 2.1 Category Strategy (2/2)

2.1 CATEGORY STRATEGY

3. SEASONAL PLANNING

3a. Understand as-is seasonal promotional planning (if any) and identify any gaps.

3b. Adapt and implement Toolkit process on seasonal promotional planning, developing a seasonal calendar for the rest of the year and ensuring relevant team members are aware of the seasonal calendar so they can start planning 2-3 months before upcoming seasonal promotions.

4. LISTING NEW PRODUCTS

4a. Understand as-is process for listing new products and identify key gaps.

4b. Adapt and implement Toolkit process on listing new products, ensuring relevant team members are familiar with new guidelines 5-8 days

Getting Started on 2.1 Category Strategy (2/2)

1a.

2a. Understand

2b. Adapt and implement Toolkit guidelines on Assortment Optimization, aligning with Finance on criteria used for identifying and trimming underperforming SKUs, ensuring relevant team members are familiar with new criteria.

3ai.

3aii.

3. DELISTING PROCESS

Getting Started on 2.3 Product Pricing

1. OVERALL

1a. Read through Toolkit materials on product pricing and discount/ promotions.

2. PRICING

2a.

2b. Adapt pricing principles outlined in Toolkit to develop a pricing strategy.

2c. Implement pricing strategy, reviewing current prices based on pricing strategy (make adjustments if needed) and ensure pricelists/ menus are updated. 5-8 days

3. DISCOUNTS AND PROMOTIONS

3a. Adapt and implement discounting/promotional strategies outlined in Toolkit. 3-5 days

3b. Plan, execute and review discounting/promotional strategies. 3-5 days for planning

Executing and review would depend on length of promotion, assume additional 14-28 days

Getting Started on 2.4 Visual Merchandising (1/2)

2.4 VISUAL MERCHANDISING

1. OVERALL

1a. Read through Toolkit materials on Visual Merchandising.

1b. Assign team member(s) to manage Visual Merchandising and align on needed budget.

2. VISUAL MERCHANDISING AND PLANOGRAMS

2a. Understand as-is VM and identify any gaps.

2b. (Optional) Evaluate if a planogram is needed. If a planogram is needed, select suitable planogram software referring to reference planogram tools comparison and ensure relevant team member(s) know how to use them.

2c. Adapt and implement Toolkit guidelines on VM planning, referring to guidance on VM elements and product placement guidelines, , ensuring team members can implement and maintain planned VM in store.

NOTE: If budget permits, VM planning, and execution may be outsourced to external experts.

NOTE: May take longer if renovations or new fixtures are needed

Getting Started on 2.4 Visual Merchandising (2/2)

2.4 VISUAL MERCHANDISING TICK WHEN COMPLETED REFERENCE TIME RECOMMENDED (DAYS)

3. POINT OF SALES MATERIALS (POSM)

3ai. (If there are existing POSM) Evaluate effectiveness of current POSM and identify key gaps.

(Regardless if there are existing POSM or no POSM) Plan out key areas where POSM are needed with clear objectives in mind.

3bii. Adapt and implement Toolkit guidelines on selecting types of POSM and crafting impactful POSM, ensuring team members can execute the placement and maintenance of POSM in store.

3-5 days

14-28 days

NOTE: May take longer depending on production lead time of POSM

Key processes at a glance

(For unmanned stores) Take over shift referring to checklist

(For manned stores) Prepare for store opening with checklist

Check inventory system to ensure no negative inventory

Ensure customer service excellence throughout the day

Collect customer feedback where appropriate

(For manned stores) Close the store referring to checklist

Set appropriate inventory level management parameters

Request support for faulty store equipment

Perform refunds, exchanges and product recalls

Maintain information repository

Organize storeroom

Review and update sales forecast (at SKU level) (optional)

Update sales status categorization for SKUs

Perform annual stock take

Create a Stock Keeping Unit (SKU)

Perform shrinkage adjustment

Review category strategy

(For hotel shops & self-service formats) Review product assortment mix

Review KPIs and report on performance

Prepare and review shrinkage report

Review customer feedbacks

Plan seasonal calendar and seasonal offerings

Review visual merchandising strategy and planograms

Review Point of Sales Materials (POSM)

Train team members

Operate in-room delivery/ click and collect service(s) (optional)

List new products

Delist unsuitable products

Set/ adjust prices

Run discounts and promotions

(For Grab & Go)

Review product assortment mix

Glossary

ABBREVIATION FULL NAME

A/B testing A/B testing

BPA-free Bisphenol A-free

CCTV Closed-Circuit Television

CSAT Customer Satisfaction Score

ESG Environmental, Social, and Governance

FAQ Frequently Asked Questions

FEFO First Expired, First Out

KPIs Key Performance Indicators

MOQ Minimum Order Quantity

NPS Net Promoter Score

P&L Profit and Loss

POS Point of Sales

POSM Point of Sale Materials

ROP Reorder Point

SKU Stock Keeping Unit

VM Visual Merchandising

DESCRIPTION

A method of comparing two versions of a webpage or app against each other to determine which one performs better. It is often used in marketing and product design to optimize user experience and increase conversion rates.

Refers to products that are made without the chemical compound bisphenol A (BPA), which is commonly found in plastics and has been associated with health risks. BPA-free products are considered safer for consumer use.

A system in which video cameras installed in a space transmit signals that are not publicly distributed but are monitored, primarily for surveillance and security.

A metric used by businesses to measure the satisfaction level of their customers with the products or services they offer.

Refers to the consideration of environmental, social and governance factors with a view of their impact on society and the environment.

A document or webpage that provides answers to common questions about a particular topic, product, or service.

A method of inventory management where products with the earliest expiration dates are used or sold first to prevent spoilage or obsolescence.

Specific metrics used by organizations to measure their performance and progress toward achieving strategic goals.

The lowest quantity of a product that a supplier is willing to sell in a single order. Buyers are required to purchase at least this quantity when placing an order.

Metric used to measure customer loyalty and satisfaction based on the likelihood of customers recommending a company's products or services to others.

Refers to actual or expected revenues and expenses over a specified period of time.

The location where a retail transaction is completed. It can refer to a physical shop or an online platform where goods or services are purchased. It is commonly used to refer to the cash desk/ register.

Materials or displays used to attract customers' attention and promote products or services in store at the point of sale.

In inventory management, the inventory level at which a new order should be placed to replenish stock before it runs out, considering lead time and demand variability.

A unique code or number used to identify and track individual items in inventory or a product catalog.

The practice of designing and arranging a store's layout and displays to attract customers and maximize sales. It involves creating visually appealing displays to showcase products and engage customers.